Determinants of foreign direct investment inflows to the industrial sector in BRICS-T countries

Foreign direct investment is a type of investment that is frequently used in inter-country relations following the liberalization of global capital. Social, political, economic and sociological factors have an impact on the continuation or entry of foreign direct investments in a country. These factors are divided into two as attractive and repulsive factors for investors. In this context, the aim of the study is to analyze the determinants of FDI inflows to the industrial sector in BRICS-T countries. In this direction, the econometric model established by using the amount of foreign direct investment in the industrial sector of BRICS-T countries between 2010-2022 as the dependent variable and labor costs, GDP, real effective exchange rate, economic policy uncertainty, trade openness and raw material and natural resource income data as independent variables was tested by panel data analysis method. According to the findings, labor cost, trade openness and real effective exchange rate variables have a significant and negative relationship with FDI inflows to the industrial sector in BRICS-T countries, while GDP variable has a significant and positive relationship. In addition, economic policy uncertainty and raw material and natural resource income variables were found to be statistically insignificant in the study. Keywords: BRICS-T, Foreign Direct Investment, Industry, Panel Data Analysis