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Dynamic Panel Data Model and FDI Determinants in India

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  • Rudra Prakash Pradhan

Abstract

The paper deals with different characteristics of panel data models to examine the determinants of FDI inflows in India. Using the data over 2001-2010, it finds that the main determinants of FDI inflows are the availability of power, domestic investment and profit. It further justifies that higher profitability increases FDI inflows into a state, while larger variability in it can reduce the same.

Suggested Citation

  • Rudra Prakash Pradhan, 2012. "Dynamic Panel Data Model and FDI Determinants in India," The IUP Journal of Financial Economics, IUP Publications, vol. 0(1), pages 33-41, March.
    • Handle: RePEc:icf:icfjfe:v:10:y:2012:i:1:p:33-41
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