Foreign Direct Investment and Economic Activity in India
AbstractThis paper examines the relationship between foreign direct investment and economic activity in India in the post liberalisation period. Foreign direct investment is measured both by the amount approved as well as the actual flows. Economic activity is measured by the index of industrial production. Granger causality tests and innovation accounting analysis suggest that FDI flows (approvals and actual) respond to the level of industrial production. Actual flows, however, do not Granger-cause industrial output.
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Bibliographic InfoPaper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 62.
Length: 23 pages
Date of creation: Mar 1999
Date of revision:
Other versions of this item:
- Pami Dua & Aneesa I. Rashid, 1998. "Foreign Direct Investment and Economic Activity in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 33(2), pages 153-168, July.
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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- Ansari, Mohd. Shamim & Ranga, Mukesh, 2010. "India’S Foreign Direct Investment: Current Status, Issues And Policy Recommendations," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 1(2), pages 1-16.
- James Laurenceson & Abby Kamalankanthan, . "How important is foreign capital to income growth in China and India?," EAERG Discussion Paper Series 0405, School of Economics, University of Queensland, Australia.
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