The Patterns of Capital Flows within BRICS:FDI and Impacts on GDP

Abstract

The purpose of this paper is to examine foreign direct investments (FDI) and the affects on GDP within the countries of the BRICS. This study examines the time
frame from 2005-2011 with an emphasis on the affects of the financial crisis on the BRICS GDP due to FDI flows. This paper is divided into five sections. First,
the introduction briefly explaining the theory of capital flow and FDI as well as a global look at FDI inflows to developing economies. Second, a description of
the BRICS and potential growth within these countries. Third, a capital flow overview in terms of inward and outward FDI based on data from UNCTAD. Fourth, the
general effects of FDI on GDP of the BRICS as a whole. Finally, an individual country analysis and the direct affects of FDI on each country’s GDP.