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Social determinants of intra-regional dispersion of FDI in India

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  • Kayam, Saime Suna
  • Ecer, Sencer
  • Gupta, R

Abstract

The foreign direct investment (FDI) strategy has imbued India’s once stagnant industrial sector with capital and job opportunity. However, as India’s GDP grows ever larger, there is a concern that the growth within the country is not evenly distributed and may in fact exacerbate current economic disparities. This paper seeks to look at potential avenues poorer states can take to attract FDI if they choose to as a method to stay competitive within the country. Our hypothesis is that measures such as power rating (as a proxy for infrastructure), literacy, and minimum wage would be highly significant related to inward FDI.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39153.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:39153

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Keywords: foreign direct investment; regional diversification; socioeconomic factors;

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