Unveiling the Transparency-FDI Nexus: A Cross-Country Analysis of BRICS Countries

Abstract

Corruption is seen as a crucial factor that investors take into account when making judgements. Therefore, This study examines the relation between corruption and foreign direct investment (FDI) levels in the BRICS countries, namely Brazil, Russia, India, China, and South Africa, from 2002 to 2022. This research study intends to investigate the impact of corruption on the levels of foreign direct investment (FDI) in the BRICS states, considering their rapid ascent and the attention they have received on the international stage. In order to examine the impact of corruption on specific countries, an ARDL&OLS model is performed on each of the five states. Corruption is significant in many nations, although there is an inverse association between corruption and foreign direct investment (FDI) in Russia, India, China, and South Africa. However, in Brazil, there is a positive relation between corruption and FDI .