Dataset for Democracy and Foreign Direct Investment in BRICS TM countries

The study, first of all, tested the hypothesis of “there is a relationship between democracy and FDI” to answer the research question raised at the beginning. The research sample was selected as BRICS-TM (Brazil, Russia, India, China, South Africa, Türkiye, Mexico) countries that have come to the fore in the world economy in recent years and whose strategic importance and power are expected to increase in the upcoming years. These countries were preferred because of their potential to attract FDI. <br> FDI (LNFDI) was modeled as the dependent variable in this study. The democracy variable (DEMOC) was fictionalized as the independent variable. In addition, inflation (INF) and per capita income (PGDP) variables affecting FDI were added to the model as control variables based on the literature. First of all, the data on the indices of "political rights" and "civil liberties", which are accepted as indicators of "democracy" in the literature, were collected from the Freedom House database, and then the means of these indices were included in the analysis as values ​​for the variable of democracy. The index takes a value between 1 and 7; 1 is the best state of the level of democracy and 7 is the worst state of the level of democracy. Index values were attached to the model by scaling so that the minimum was 0 and the maximum was 100 in case of problems in analyses, calculation, and interpretation. In this study, inflation and income per capita variables were preferred in terms of both being the most preferred variables in the literature (details are given in Literature Review) and being the variables that affect foreign direct capital as the most inclusive in terms of macroeconomics.