Year of Graduation
The Impact of Foreign Investments on Stock Market Development
The main purpose of this work is to analyze the relationship between foreign investments and the stock market in BRICS countries. It is believed that the influx of foreign investment (FDI / FPI) has a positive impact on stock indices. To determine the relationship between the main stock indices of the BRICS countries and direct and portfolio investments data from various sources are used. The sample was tested for serial autocorrelation and heteroscedasticity. After conducting the tests, a panel regression with standard errors in the form of Nyi-West was chosen for analysis. The obtained results confirmed hypotheses about the importance of foreign investments.