The Relationship between FDI and Economic Performance (BRICS)

Abstract

FDI is an important force to promote economic development. As the main way of international capital flows FDI has an increasingly significant impact on host country's economy. We took into account its impact on economic performance. From the perspective of econometric analysis, the relationship between the FDI and economic performance of the BRICS countries is examined by DEA model. The empirical analysis shows that FDI has a positive impact on the overall economic performance of the BRICS countries; however FDI occurs to have a negative impact on the economic performance of China.