Empirical Economic Bulletin, An Undergraduate Journal


This paper is a time series analysis of the determinants of foreign direct investment inflows regarding the country of Brazil over the past 34 years. Brazil has seen rapid change throughout their country over the past few decades, and it now is one of the most popular hosts for foreign investors. GDP growth, trade openness, taxes, political instability, energy imports, and inflation are all as possible significant determinants of FDI inflows in Brazil that this model analyzes. The results show that inflation, trade openness, and political instability are the most significant variables when it comes to understanding FDI inflows.