The recent phenomenal increase in the outward foreign direct investment (FDI) of emerging countries has raised concerns among policymakers. One school of thought argues that when multinational firms relocate production facilities abroad, it reduces the likelihood of concurrent investments in the home country, resulting in reduced domestic output. In this case, the outward FDI would harm the domestic investments. The other argues that the outward FDI would be more advantageous for the domestic investment when firms internationalize for entering into new markets and/or to import intermediate goods, wherein outward investments boost the returns in the home country, leading to a positive impact of outward FDI on domestic investment. The influence of the outward FDI on the domestic investment of any country or a region state cannot be generalized as each country is unique, and the drivers of investments would differ for different countries at the different development phases of each country. An attempt was made in this study to empirically trace the impact of the domestic investment, market size, and trade openness of the BRICS's members on the BRICS's outward FDI as a group. The results of the panel least square method highlighted that the variables - domestic investment and trade openness of BRICS had a positive effect on the outward FDI ; whereas, the market size of BRICS was inversely related to outward FDI of BRICS. The data were tested for stationarity and Hausman test validated the results.

1. Ali, U., Wang, J.- J., Morales, V. P. Y., & Wang, M.- M. (2019). Foreign direct investment flows and domestic investment in China : A multivariate time series analysis. Investment Analysts Journal, 48(1), 42-57. <a href=https://dx.doi.org/10.1080/10293523.2019.1570677 target="_blank">https://dx.doi.org/10.1080/10293523.2019.1570677</a>
2. Al-Sadig, A. J. (2013). Outward foreign direct investment and domestic investment: The case of developing countries (IMF Working Paper 13/52). <a href=http://dx.doi.org/10.5089/9781475517934.001 target="_blank">http://dx.doi.org/10.5089/9781475517934.001</a>
3. Aluvala, R. (2011). FDI prospects and challenges ahead for India. Indian Journal of Finance, 5(4), 49-56.
4. Amal, M., & Tomio, B.T. (2015) Institutional determinants of outward foreign direct investment from emerging economies: A home-country perspective. In S. Marinova (ed.), Institutional impacts on firm internationalization. London : Palgrave Macmillan.
5. Andersen, P. S., & Hainaut, P. (1998). Foreign direct investment and employment in the industrial countries (BIS Working Papers No. 61). Retrieved from <a href=https://www.bis.org/publ/work61.pdf target="_blank">https://www.bis.org/publ/work61.pdf</a>
6. Bénassy-Quéré, A., Fontagné, L., & LahrÈche-Révil, A. (2001). Exchange-rate strategies in the competition for attracting foreign direct investment. Journal of the Japanese and International Economies, 15(2), 178-198. <a href=http://dx.doi.org/10.1006/jjie.2001.0472 target="_blank">http://dx.doi.org/10.1006/jjie.2001.0472</a>
7. Bevan, A., Estrin, S., & Meyer, K. (2004). Foreign investment location and institutional development in transition economies. International Business Review, 13(1), 43-64. <a href=http://dx.doi.org/10.1016/j.ibusrev.2003.05.005 target="_blank">http://dx.doi.org/10.1016/j.ibusrev.2003.05.005</a>
8. Bhasin, N., & Jain, V. (2013). Home country determinants of outward FDI: A study of select Asian economies. <a href=https://dx.doi.org/10.2139/ssrn.2206739 target="_blank">https://dx.doi.org/10.2139/ssrn.2206739</a>
9. Braunerhjelm, P., Oxelheim, L., & Thulin, P. (2005). The relationship between domestic and outward foreign direct investment: The role of industry-specific effects. International Business Review, 14(6), 677-694. <a href=https://dx.doi.org/10.1016/j.ibusrev.2003.05.005 target="_blank">https://dx.doi.org/10.1016/j.ibusrev.2003.05.005</a>
10. Calderón, A. (2014, July). Outward FDI in Brazil: A matter of economic growth and institutional configuration. Paper presented at FLACSO-ISA Joint International Conference in Buenos Aires, Argentina. Retrieved from <a href=http://web.isanet.org/Web/Conferences/FLACSO-ISA%20BuenosAires%202014/Archive/fbf46b9f-95f0-4aa2-b9ab-60b89d693598.pdf target="_blank">http://web.isanet.org/Web/Conferences/FLACSO-ISA%20BuenosAires%202014/Archive/fbf46b9f-95f0-4aa2-b9ab-60b89d693598.pdf</a>
11. Chellasamy, P., & Ponsabariraj, N. (2016). FDI in the retail sector and its impact on select macro-economic variables : A comparative study of India and China. Indian Journal of Finance, 10(6), 24-37. <a href=https://dx.doi.org/10.17010/ijf/2016/v10i6/94876 target="_blank">https://dx.doi.org/10.17010/ijf/2016/v10i6/94876</a>
12. Cipollina, M., Giovannetti, G., Pietrovito, F., & Pozzolo, A. F. (2011). FDI and growth: What cross-country industry data say. <a href=https://dx.doi.org/10.2139/ssrn.1971172 target="_blank">https://dx.doi.org/10.2139/ssrn.1971172</a>
13. Culem, C. G. (1988). The locational determinants of direct investments among industrialized countries. European Economic Review, 32(4), 885-904. <a href=https://dx.doi.org/10.1016/0014-2921(88)90051-7 target="_blank">https://dx.doi.org/10.1016/0014-2921(88)90051-7</a>
14. Cushman, D. O. (1985). Real exchange rate risk, expectations, and the level of direct investment. The Review of Economics and Statistics, 67(2), 297-308. <a href=https://dx.doi.org/10.2307/1924729 target="_blank">https://dx.doi.org/10.2307/1924729</a>
15. Das, K. C. (2013). Home country determinants of outward FDI from developing countries. Margin: The Journal of Applied Economic Research, 7(1), 93-116. <a href=https://dx.doi.org/10.1177/0973801012466104 target="_blank">https://dx.doi.org/10.1177/0973801012466104</a>
16. Dasgupta, N. (2009). Examining the long run effects of export, import and FDI inflows on the FDI outflows from India: A causality analysis. Journal of International Business and Economy, 10(1), 65-88.
17. Dawson, D. S., Raj, S. A., & Karthikeyan, K. (2012). BRICS countries: The future 5 nation superpower. Arthshastra Indian Journal of Economics & Research, 1(4), 11-24. <a href=https://dx.doi.org/10.17010/aijer/2012/v1i4/54532 target="_blank">https://dx.doi.org/10.17010/aijer/2012/v1i4/54532</a>
18. Dunning, J. H. (1979). Explaining changing patterns of international production: In, defence of the eclectic theory. Oxford Bulletin of Economics and Statistics, 41, 269-295. <a href=http://dx.doi.org/10.1111/j.1468-0084.1979.mp41004003.x target="_blank">http://dx.doi.org/10.1111/j.1468-0084.1979.mp41004003.x</a>
19. Egger, P., & Pfaffermayr, M. (2009). The impact of bilateral investment treaties on foreign direct investment. The Effect of Treaties on foreign direct investment, 253-272. <a href=http://dx.doi.org/10.1093/acprof:oso/9780195388534.003.0008 target="_blank">http://dx.doi.org/10.1093/acprof:oso/9780195388534.003.0008</a>
20. Feldstein, M. (1994). The effects of outbound foreign direct investment on the domestic capital stock (NBER Working Paper No. 4668). <a href=http://dx.doi.org/10.3386/w4668 target="_blank">http://dx.doi.org/10.3386/w4668</a>
21. Habib, M., & Zurawicki, L. (2002). Corruption and foreign direct investment. Journal of International Business Studies, 33(2), 291-307. <a href=http://dx.doi.org/10.1057/palgrave.jibs.8491017 target="_blank">http://dx.doi.org/10.1057/palgrave.jibs.8491017</a>
22. Herzer, D., & Schrooten, M. (2008). Outward FDI and domestic investment in two industrialized countries. Economics Letters, 99(1), 139-143. <a href=http://dx.doi.org/10.1016/j.econlet.2007.06.014 target="_blank">http://dx.doi.org/10.1016/j.econlet.2007.06.014</a>
23. Holtbrügge, D., & Kreppel, H. (2012). Determinants of outward foreign direct investment from BRIC countries: An explorative study. International Journal of Emerging Markets, 7(1), 4-30. <a href=http://dx.doi.org/10.1108/17468801211197897 target="_blank">http://dx.doi.org/10.1108/17468801211197897</a>
24. Kalotay, K., & Sulstarova, A. (2010). Modelling Russian outward FDI. Journal of International Management, 16(2), 131-142. <a href=http://dx.doi.org/10.1016/j.intman.2010.03.004 target="_blank">http://dx.doi.org/10.1016/j.intman.2010.03.004</a>
25. Kayam, S. S. (2009). Home market determinants of FDI outflows from developing and transition economies (MPRA Paper No. 16781). Retrieved from <a href=https://mpra.ub.uni-muenchen.de/id/eprint/16781 target="_blank">https://mpra.ub.uni-muenchen.de/id/eprint/16781</a>
26. Kim, S. (2000). Effects of outward foreign direct investment on home country performance: Evidence from Korea. In, T. Ito & A. O. Krueger (eds.), The role of foreign direct investment in East Asian economic development (NBER-EASE) (Vol. 9, pp. 295-317). Retrieved from <a href=http://www.nber.org/chapters/c8503 target="_blank">http://www.nber.org/chapters/c8503</a>
27. Klimek, A. (2015). Institutions and outward foreign direct investment. International Journal of Management and Economics, 46(1), 101-119. <a href=https://dx.doi.org/10.1515/ijme-2015-0023 target="_blank">https://dx.doi.org/10.1515/ijme-2015-0023</a>
28. Korbin, S. J. (1976). Foreign direct investment, industrialization, and social change. Journal of Conflict Resolution, 20(3), 497-522.
29. Kwon, K., & Koh, T. (2019). Determinants of Korean FDI and corporate performance in Latin America and the Caribbean in 2000s : Micro and macro data analysis. Indian Journal of Finance, 13(6), 7-28. <a href=https://dx.doi.org/10.17010/ijf/2019/v13i6/123896 target="_blank">https://dx.doi.org/10.17010/ijf/2019/v13i6/123896</a>
30. Leong, S. T., & Lee, C. G. (2019). The determinants of Singapore's outward foreign direct investment to China and Hong Kong. The Journal of Developing Areas, 53(1), 95-108. <a href=https://dx.doi.org/10.1353/jda.2019.0006 target="_blank">https://dx.doi.org/10.1353/jda.2019.0006</a>
31. Levy-Yeyati, E., Panizza, U. G., & Stein, E. H. (2003). The cyclical nature of North-South FDI flows. <a href=https://dx.doi.org/10.2139/ssrn.366121 target="_blank">https://dx.doi.org/10.2139/ssrn.366121</a>
32. Lipsey, R., & Stevens, G. V. (1992). Interactions between domestic and foreign investment. Journal of International Money and Finance, 11(1), 40-62. <a href=https://dx.doi.org/10.3386/w2714 target="_blank">https://dx.doi.org/10.3386/w2714</a>
33. Perea, J. R., & Stephenson, M. (2016). Outward FDI from developing countries. In K. Schwab (ed.), Global investment competitiveness report 2017/2018. Geneva : World Economic Forum. <a href=https://dx.doi.org/10.1596/978-1-4648-1175-3 target="_blank">https://dx.doi.org/10.1596/978-1-4648-1175-3</a>
34. Rodríguez, X. A., & Pallas, J. (2008). Determinants of foreign direct investment in Spain. Applied Economics, 40(19), 2443-2450.
35. <a href=https://dx.doi.org/10.1080/00036840701367606 target="_blank">https://dx.doi.org/10.1080/00036840701367606</a>
36. Singh, K. (2016). A comparative analysis of foreign trade of BRICS countries. Prabandhan: Indian Journal of Management, 9(2), 29-40. <a href=https://dx.doi.org/10.17010/pijom/2016/v9i2/87235 target="_blank">https://dx.doi.org/10.17010/pijom/2016/v9i2/87235</a>
37. Svensson, R. (1996). Effects of overseas production on home country exports: Evidence based on Swedish multinationals. WeltwirtschaftlichesArchiv, 132(2), 304-329.
38. Tang, S., Selvanathan, E. A., &Selvanathan, S. (2008). Foreign direct investment, domestic investment and economic growth in China: A time series analysis. The World Economy, 31(10), 1292-1309. <a href=https://dx.doi.org/10.1111/j.1467-9701.2008.01129.x target="_blank">https://dx.doi.org/10.1111/j.1467-9701.2008.01129.x</a>
39. Tripti, & Bandyopadhyay, G. (2017). International trade driven growth patterns in India, Pakistan, and Sri Lanka (1985-2015) : An empirical study. Indian Journal of Finance, 11(10), 33-50. <a href=https://dx.doi.org/10.17010/ijf/2017/v11i10/118774 target="_blank">https://dx.doi.org/10.17010/ijf/2017/v11i10/118774</a>
40. UNCTAD. (2006). World investment report: Implications for development: overview. New York : UN.
41. UNCTAD. (2009). World investment report: Implications for development: overview. New York : UN.
42. UNCTAD. (2013). World investment report: Global value chains. Investment & trade for development. New York : UN.
43. UNCTAD. (2016). World investment report: Investor nationality policy challenges. New York : UN.
44. UNCTAD. (2018). World investment report: Investment & new industrial policies: Key messages & overview. New York : UN.