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The Variation in Indian Inward FDI Patterns

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  • Ping Zheng

    () (University of Westminster)

Abstract

Abstract This study examines the variation in Indian inward FDI patterns, considering the impact of economic development and geographic location on the variation from both FDI home and host country perspectives. Employing a panel dataset at the aggregate country-level, the study is conducted using the generalised least squares (GLS) model. The findings suggest that Indian FDI patterns vary over time in line with Indian economic and structural transformations. The patterns also differ between the home country groups in line with their economic development and geographic location relative to India. The desirable patterns of Indian inward FDI are determined not only the development levels of both host and home countries but also the host country’s factor endowment pattern. It is important for the Indian government to formulate selective targeting FDI policies to maximise economic impact of inward FDI by attracting more desirable efficiency-seeking FDI for higher economic growth.

Suggested Citation

  • Ping Zheng, 2013. "The Variation in Indian Inward FDI Patterns," Management International Review, Springer, vol. 53(6), pages 819-839, December.
  • Handle: RePEc:spr:manint:v:53:y:2013:i:6:d:10.1007_s11575-013-0178-z
    DOI: 10.1007/s11575-013-0178-z
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