Impact of Foreign Direct Investments on the Gross Domestic Product: A Study on Indian and Chinese Economy
Published: 2013
Author(s) Name: M. Rakesh Krishnan |
Author(s) Affiliation: Assistant Prof., Dept. of Business Admn., Rajagiri College of Social Sciences, Kerala, India
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Abstract
Inflows of world FDI increased tremendously from US
$200 billion in 1990 to almost US $ 916 billion in 2005.
The BRIC report states that India is going to be one
of the most popular destinations for FDI from across
the globe. The fundamental question is whether this
inflow of FDI would lead to any significant growth in the
domestic economy. This study attempts to bring out
the relationship between the Gross Domestic Product
(GDP) and the Foreign Direct Investments (FDIs). The
study concludes that in both the economies FDI are
highly positively influential on the GDP, with Chinese
economy showing a marginally higher correlation.
Keywords: Foreign Direct Investments (FDIs), Gross Domestic Product (GDP)
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