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Relationship between FDI Inflows and Exports at Subnational / State Level: A Case Study on the Indian Economy

Author

Listed:
  • Gurpriya Sadana

    (Indian Institute of Foreign Trade (IIFT), Delhi, India)

  • Jaydeep Mukherjee

    (Department of Commerce, Ministry of Commerce and Industry)

Abstract

The study examines the relationship between exports and FDI inflows at the subnational /state level for the Indian economy from 2011-2020. The study employs panel random effect regression and found that GSDP, infrastructure index, financial deve lopment index and state policy variable representing distinct export promotion policies pursued by the states are significant determinants of exports at the state level. However, a substitutable relationship has been established between FDI inflows and exports at the state level, suggesting that FDI is market-seeking and does not contribute to improved export performance by the states.

Suggested Citation

  • Gurpriya Sadana & Jaydeep Mukherjee, 2024. "Relationship between FDI Inflows and Exports at Subnational / State Level: A Case Study on the Indian Economy," Working Papers 2470, Indian Institute of Foreign Trade.
    • Handle: RePEc:ift:wpaper:2470
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Subnational Exports; Spatial factors; Panel Data; India;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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