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FDI in India and its economic effects on service industry

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  • Yin Feng

Abstract

Utilising time series data on Foreign Direct Investment (FDI) inflow, exports and outputs in service industry, co-integration, Vector Auto-Regression (VAR) and causality analyses are conducted on the basis of aggregated data that are available for the period 1991-2007. The empirical results indicate that there exist long-run co-integrating relationships between FDI and service exports and outputs in India; whereas FDI inflow appears to have no significant impact on service exports and outputs performance, there is no evidence of long-run causal links between FDI inflow and service exports and outputs in service industry, and there is only a weak long-run causality running from output of services to FDI.

Suggested Citation

  • Yin Feng, 2009. "FDI in India and its economic effects on service industry," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 2(2), pages 179-193.
    • Handle: RePEc:ids:ijtrgm:v:2:y:2009:i:2:p:179-193
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    Cited by:

    1. Ranjan Dash & P. Parida, 2013. "FDI, services trade and economic growth in India: empirical evidence on causal links," Empirical Economics, Springer, vol. 45(1), pages 217-238, August.

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