IMPACTS OF FOREIGN DIRECT INVESTMENT

This study aimed to verify the influence that Foreign Direct Investment (FDI) has on the flow of Brazilian exports. A literature review was conducted, which yielded a wide range of opinions on the motivations for FDI and its true purpose and applicability. To give a greater degree of certainty to the findings obtained in the literature review, an econometric analysis having both FDI and Brazilian Direct Investment (BDI) as independent variables and Brazilian exports as dependent variable, the following results were obtained: FDI has no complementary character to Brazilian exports; exchange rate devaluation also has no significant representation to expand Brazilian exports; BDI is the incentive for Brazilian exports, for the supply of inputs to the units linked to such investments. Therefore, in answer to the problem question, FDI has not been an influential agent of Brazilian exports in recent years.