Does Foreign Direct Investment Lead Economic Growth in India?
Published: 2013
Author(s) Name: T.G Saji |
Author(s) Affiliation: Assistant Professor, Sri C Achutha Menon Government College, Thrissur, Kerala, India
Locked
Subscribed
Available for All
Abstract
This paper investigates the causal relations between foreign direct
investment and economic growth in a developing country like India.
The analysis has been made under Johansen’s Cointegration
framework based on 21 years of data covering the post reform
era of the country. The Cointegration analysis finds strong positive
relation between FDI and economic growth in India. The study
concludes with a suggestion that the policy makers in India should
develop investor friendly environment conducive for attracting
more amount of capital from the developed world.
Keywords: FDI, Economic Growth, Unit Root, Cointegration
View PDF