Home-country determinants of outward FDI: Evidence from BRICS economies and five developed countries

Abstract: This paper studies the home-country determinants of outward FDI with a focus on nine empirically recognized host-country determinants of inward FDI, namely market size, labor cost, exchange rate, inflation, interest rate, political risks, corruption, openness, and technology. Based on a panel with 183 observations from BRICS and five developed countries (Australia, Germany, Japan, UK, US), evidence is found that market size, inflation, interest rate, political risks, and openness have significant influence on FDI outflows. Moreover, the results of this study show that there are striking differences between developing and developed countries regarding to the drivers for outward FDI.