IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpit/0508009.html
   My bibliography  Save this paper

Role of Foreign Direct Investment in India's Manufacturing Exports and Fiscal Decentralization

Author

Listed:
  • V Bhanu

    (Nizam College Osmania University Hyderabad AP)

  • M Usha

    (University College of Commerce & Business Management OU Hyderabad AP)

Abstract

The study is an empirical analysis of the role of FDI in India's manufacturing exports during the period 1990-1 - 2003-4. The study assumes importance in view of the fact that manufacturing export constitutes 60 per cent of the total exports in the post reform period and the spurt in FDI flow too took place in the above period. The study also analyses the determinants of fiscal decentralization at the sub- national level for the period 1990-91 - 2001-02. The theoretical arguments for the regression analysis of both the above aspects are based on earlier studies. Flow of FDI is found to be an important factor influencing manufacturing exports. GDP as a proxy for domestic demands; world income and unit value of exports/world unit value ratio are the other important variables influencing manufacturing exports. As regards sub-national level FDI flows, the state of Maharashtra, Delhi, Gujarat, Karnatka, Tamil Nadu and Andhra Pradesh hold the first six positions. Of the sixteen states examined, the NSDP per capita is the highest for Kerala and the lowest for Bihar. Fiscal Decentralization has been measured in terms of state expenditure as a ratio of total expenditure (centre and state). NSDP per capita and size of population are found to be significant determinants of fiscal decentralization.

Suggested Citation

  • V Bhanu & M Usha, 2005. "Role of Foreign Direct Investment in India's Manufacturing Exports and Fiscal Decentralization," International Trade 0508009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0508009
    Note: Type of Document - doc; pages: 23 . models of export demand and supply functions have been regressed
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/it/papers/0508/0508009.doc
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    foreign direct investment; exports; manufacturing; fiscal decentraization.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpit:0508009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.