IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v23y2022i4p411-434.html
   My bibliography  Save this article

Why do specific regions attract more FDI inflows in India? Role of region-specificities and insights from the dynamic panel econometrics

Author

Listed:
  • Prajukta Tripathy
  • Pragyanrani Behera
  • Bikash Ranjan Mishra

Abstract

To examine the disparity in distributional inflows of foreign direct investment (FDI), the study uses Theil index as a statistical tool to verify the skewed distribution across the regions in India and confirm the same with its decomposition scores. In order to investigate the causes of such unequal distribution of FDI inflows in India, this study uses the system GMM model for 16 regional groups from 2004 to 2015 time period. With a special concern to the region-specific factors and the agglomeration effect, the uneven dummy variables are also used to capture the inequality in FDI inflow across the regions. Our findings confirm the significant role of each of them in pocketing a major chunk of FDI inflows by a few regions. To recommend the policymakers, the present study proposes a balanced growth perspective and a comprehensive framework mitigating labour reforms, industrial productivity and FDI policy.

Suggested Citation

  • Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2022. "Why do specific regions attract more FDI inflows in India? Role of region-specificities and insights from the dynamic panel econometrics," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 23(4), pages 411-434.
    • Handle: RePEc:ids:ijecbr:v:23:y:2022:i:4:p:411-434
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=123171
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijecbr:v:23:y:2022:i:4:p:411-434. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    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.