The evaluation of role of BRICS forum in FDI ...

The evaluation of role of BRICS forum in FDI flows between India and Brazil during 1990-2018; A Time Series Analysis

Author Name : Bikash Kumar Prasad

ABSTRACT This study is an attempt to coin out the role of BRICS forum in fostering FDI between India and Brazil. Since both are emerging economy and merchandise trade engagement is increasing in post formation of BRICS forum. The role of FDI flow between these countries will reveal the mutual cooperation in capital formation, foreign exchange reserve, technological innovation and exchange and financial engagements. Data for FDI inflow and outflow between India and Brazil in U.S dollar is being derived from World Development Indicators database. Time series data from 1990 to 2018 has been extracted for analysis. Data has been tested for its consistency, stationary and autocorrelation before proceeding with analysis. Chow test has been used to test the structural changes in flow trends during 1990-2018. STATA 15.0 software has been used to test this break; this is why SBCUSUM is used as an alternative for chow test. Result shows that there is no such structural change has been observed around the inception year (2010),