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Effect of Corruption on FDI Inflows and Economic Growth: An Indian Perspective

Journal of Commerce and Accounting Research

Volume 8 Issue 4

Published: 2019
Author(s) Name: Arti Yadav, Dipika Sahu, Abhishek Singh | Author(s) Affiliation: Post Doctoral Fellow, Indian Council of Soc. Scie. Research, Dept. of Commerce, Aligarh Muslim Univ.
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Abstract

The aim of the study is to find out the impact of corruption on Foreign Direct Investment (FDI) inflows and economic growth of India. Economic growth and FDI are two of the important factors showing the development scenario in developing economies like India. At the same time, corruption continues to be one of the greatest impediments to economic and social development in these economies. The present paper examines the effects of corruption on FDI inflows and economic growth by using secondary data over the period of 1995 to 2017. Ordinary Least Squares regression has been applied as the main technique for the study. The present study contributes to the existing literature by defining the relationship between corruption, FDI inflows and economic growth in Indian aspect. Further, an endeavor has been made to comprehend that how corruption influences FDI decision and economic growth of Indian economy.

Keywords: Corruption, Foreign Direct Investment, India, Economic Growth

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