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Foreign Direct Investment and Economic Activity in India

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Author Info

  • Pami Dua

    (Delhi School of Economics)

  • Aneesa I. Rashid

    (Oakland University, Rochester)

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Abstract

This 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 Info

Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 62.

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Length: 23 pages
Date of creation: Mar 1999
Date of revision:
Handle: RePEc:cde:cdewps:62

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Related research

Keywords: Liberalization; Foreign Direct Investment; Granger Causality;

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Cited by:
  1. 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.
  2. 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.

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