IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05187987.html
   My bibliography  Save this paper

Impact of Foreign Direct Investment on Economic Growth of China and India: An Empirical Analysis

Author

Listed:
  • Tom Jacob

    (Department of Commerce, Christ College, Irinjalakuda, Kerala, India.)

  • Nikhita Anna Jiji

    (Department of Commerce, Christ College, Irinjalakuda, Kerala, India.)

Abstract

Foreign Direct Investment is an investment made by firms or individual of one country in the business of another country. Foreign investments have a positive impact on the development of the emerging economy. Inflows of Foreign Direct Investment (FDI) strengthen the trade network of a country at global level and also provide financial assistance to that country and often seen as important catalysts for economic growth in the host countries. FDI affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. This paper is to analyse the impact of FDI on the economic growth of India and China. By applying Regression Analysis exhibit that FDI has significant impact on the growth of Chinese economy but at the same time FDI have only minor or insignificant role for the development of the Indian economy during the study period from 1991 to 2020. Average FDI as a percentage of Gross Domestic Product in India is very low compared to China. This is the reason for insignificant contribution of FDI on the economic growth of Indian economy.

Suggested Citation

  • Tom Jacob & Nikhita Anna Jiji, 2021. "Impact of Foreign Direct Investment on Economic Growth of China and India: An Empirical Analysis," Post-Print hal-05187987, HAL.
    • Handle: RePEc:hal:journl:hal-05187987
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    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:hal:journl:hal-05187987. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.