Testing the relationship between FDI inflow and out flow in India: a critical analysis
This study examines the factors determining FDI inflow and outflow from India using annual data set from the period 1980-2009. More over the study has tested whether FDI inflow has any role in determining FDI out flow and vice versa. The study used stepwise regression for finding the determinants. Trade openness (Trade as a percentage of GDP), Gross Capital Formation, economic stability (Lending Rate as the proxy for economic stability) and FDI outflow are found to be the major factors determining FDI inflow in India. In case of FDI outflow labour cost (workers remittance and compensation of employees received in US $ is taken as a measure of labour cost), market size (GDP in current US $), economic stability (Lending Rate as the proxy for economic stability), Gross Capital Formation and FDI inflow are the major factors that determines FDI outflow in India. And more over FDI out flow has a role to attract FDI inflow to the country
|Date of creation:||04 Jan 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Laura Resmini, 2000.
"The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November.
- Laura Resmini, 1999. "The Determinants of Foreign Direct Investment into the CEECs: New Evidence from Sectoral Patterns," LICOS Discussion Papers 8399, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Hermes, Niels & Lensink, Robert, 2000.
"Foreign direct investment, financial development and economic growth,"
00E27, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Niels Hermes & Robert Lensink, 2003. "Foreign direct investment, financial development and economic growth," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages 142-163.
- Robert E. Lipsey, 2000. "Interpreting Developed Countries' Foreign Direct Investment," NBER Working Papers 7810, National Bureau of Economic Research, Inc.
- repec:lan:wpaper:3654 is not listed on IDEAS
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998.
"How does foreign direct investment affect economic growth?1,"
Journal of International Economics,
Elsevier, vol. 45(1), pages 115-135, June.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
- repec:lan:wpaper:4048 is not listed on IDEAS
- Hans-Peter Lankes & A. J. Venables, 1996. "Foreign direct investment in economic transition: the changing pattern of investments," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 331-347, October.
- V N Balasubramanyam & V Mahambare, 2003. "Foreign direct investment in India," Working Papers 539987, Lancaster University Management School, Economics Department.
- repec:lan:wpaper:3763 is not listed on IDEAS
- Wei, Wenhui, 2005. "China and India: Any difference in their FDI performances?," Journal of Asian Economics, Elsevier, vol. 16(4), pages 719-736, August.
- Xu, Bin, 2000. "Multinational enterprises, technology diffusion, and host country productivity growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 477-493, August.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48609. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.