Determinants of Foreign Direct Investment in MINT Countries (Mexico, Indonesia, Nigeria, and Turkey)

The main objective of this study is to analyze the determinants of foreign direct investment in MINT countries (Mexico, Indonesia, Nigeria, and Turkey). The variables used in this study are foreign direct investment (FDI), gross domestic product (GDP), inflation, and trade. The annual data for 30 years, from 1990 to 2019 were employed. The tests used to determine the result of this study consist of the Im, Pesaran, and Shin (IPS) Panel Unit Root Test, Pedroni Panel Cointegration Test, and Pooled Mean Group (PMG) Estimation. The results indicate that, in the long run, GDP has a positive impact on FDI inflows to MINT countries and that it is statistically significant. In addition, inflation is statistically significant and negatively impacts FDI. Contrary to priori expectations, trade has a negative relationship with FDI, and it is not statistically significant. Additionally, none of the independent variables showed a statistically significant impact on FDI inflow in the short run. Lastly, this paper suggests policy recommendations on this issue, explains the study's limitations and provides recommendations for future studies in relation to this topic