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Determinants of FDI in India and Sri Lanka

Author

Listed:
  • Badar Alam Iqbal
  • Mohd Nayyer Rahman
  • Nadia Yusuf

Abstract

Determinants of Foreign Direct Investment has remained an exhaustive endeavour for the researchers and at times it becomes a Pollyanna for policy making. The present piece of research is an attempt to gauge the determinants of FDI for India and Sri Lanka. The plausible determinants are selected for empirical testing such as Market Size, Inflation, Trade Openness and Current Account Balance. Proxy variables are selected in case the determinant is not measured in itself. Augmented Dicky Fuller test (Dicky & Fuller, 1981) is used for checking stationary and for hypotheses testing Ordinary Least Squares Regression is used. JEL: C13, E22, F21, F23

Suggested Citation

  • Badar Alam Iqbal & Mohd Nayyer Rahman & Nadia Yusuf, 2018. "Determinants of FDI in India and Sri Lanka," Foreign Trade Review, , vol. 53(2), pages 116-123, May.
    • Handle: RePEc:sae:fortra:v:53:y:2018:i:2:p:116-123
    DOI: 10.1177/0015732517734751
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    References listed on IDEAS

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    Cited by:

    1. Md. Hasanur Rahman, 2023. "Does the current account balance influence foreign direct investment in the Indian economy? Application of quantile regression model," SN Business & Economics, Springer, vol. 3(5), pages 1-18, May.
    2. Imad A. Moosa & Ebrahim Merza, 2022. "The effect of COVID-19 on foreign direct investment inflows: stylised facts and some explanations," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    3. Badar Alam Iqbal & Mohd Nayyer Rahman & Shaista Sami, 2019. "Impact of Belt and Road Initiative on Asian Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 260-277, September.
    4. Olabode Philip Olofin & Oluwole Oladipo Aiyegbusi & Abayomi Ayinla Adebayo, 2019. "Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)," Foreign Trade Review, , vol. 54(3), pages 159-176, August.

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    More about this item

    Keywords

    FDI; determinants; trade openness; current account;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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