Research On Investment Facilitation In BRICS Countries

“Investment facilitation” is an emerging hot topic in the current field of international investment.Its essence is to reduce investment costs and create a coordinated,transparent and predictable investment environment by simplifying and coordinating international direct investment related procedures.In August 2017,Shanghai,the Outlines for BRICS Investment Facilitation was reached at the 7th Meeting of the BRICS Trade Ministers.This "Outline" will enable BRICS governments and societies to pay attention to the problems of the investment environment.The BRICS countries enjoy rich resources and potential demographic dividends,and have broad development space.However,due to factors such as low level of economic development,lagging infrastructure,and low financing capacity,there are inconveniences in attracting foreign investment.Based on this background,This paper takes the investment facilitation of the BRICS as the research object,based on the theory of transaction cost and the inductive factors combination of investment,along the thought of “Why promote the investment facilitation of the BRICS countries? — The conditions and status quo?— How to solve the problem? ”,put forward the strategy of promoting the construction of investment facilitation level of the BRICS countries,the specific arrangements are as follows:This paper firstly focuses on the hot topic of investment facilitation,introduces world's major economic organization's definition of investment facilitation and its development process.Followed by is the analysis of the status quo of foreign direct investment in BRICS countries through the scale of FDI,the industrial distribution of FDI.The factors of investment facilitation in the five countries mainly include the status quo of infrastructure,business investment environment,policy system,financial services,and information technology.Next,combining previous researcher findings and the development of the definition of the investment facilitation,this paper uses principal component analysis method through the SPSS25.0 software to weight 21 investment facilitation index,to measure the level of investment facilitation of the BRICS countries and Singapore and the United States.The results show that from the perspective of the average,the rankings of investment facilitation in the BRICS countries are South Africa,China,India,Russia,and Brazil.South Africa's score is between 0.7-0.8,which is relatively convenient;China,India,and Russia's score between 0.6-0.7,which is generally convenient,and Brazil has the lowest score and is in an inconvenient state.Singapore has the highest score for five consecutive years,and the degree of facilitation is close to 1;the overall score of the United States is 0.8-0.9,which is relatively convenient.It can be seen that the level of investment facilitation in the BRICS countries is much lower than that in developed countries such as Singapore and the United States.Finally,this paper put forward that strengthen the hardware infrastructure construction;actively improve the business environment,reduce investment barriers;improve the institutional environment,improve management efficiency and transparency;actively apply the BRICS development bank,improve the efficiency of financial services;actively promote e-commerce,and use information technology to improve the efficiency of the business;strengthen international cooperation.From the six aspects to elaborate suggestions of promoting the investment facilitation construction of the BRICS countries.