The impact of foreign ownership restrictions on inward FDI and economic growth: a case for BRICS countries

Abstract

This study sets out to investigate the impact of foreign ownership restrictions on the inflow of Foreign Direct Investments (inflow of FDI). The study further examines how the inflow of FDI subsequently affects the growth of host economies. The study employs panel data analysis over the period of twenty-one years (1997 – 2018), providing empirical evidence in BRICS economies. The findings reveal that ownership restrictions have a negative impact on the inflow of FDI, while FDI positively impacts economic growth. The results primarily provide guidance to the policy makers in the BRICS economies who are responsible for providing a conducive environment for investments.