A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India

One of the main pointers of the health of any economy is its Gross Domestic Product (GDP). It indicates the size of the economy. It also helps in determining and comparing the growth of economy over different periods and also with that of other economies. Investment is the major factor that contribu...

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Main Authors: Sharil Sharma, Manpreet Kaur, Preeti Sharma, Sukhmani Sandhu
Format: Article
Language:English
Published: EconJournals 2020-09-01
Series:International Journal of Economics and Financial Issues
Online Access:http://mail.econjournals.com/index.php/ijefi/article/view/10463
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author Sharil Sharma
Manpreet Kaur
Preeti Sharma
Sukhmani Sandhu
author_facet Sharil Sharma
Manpreet Kaur
Preeti Sharma
Sukhmani Sandhu
author_sort Sharil Sharma
collection DOAJ
description One of the main pointers of the health of any economy is its Gross Domestic Product (GDP). It indicates the size of the economy. It also helps in determining and comparing the growth of economy over different periods and also with that of other economies. Investment is the major factor that contributes to the growth of GDP. Increase in level of investment leads to the multiplier impact on increasing the levels of employment and income. There is significant role of Foreign Investment in open economies. Such investment can be direct or indirect. The current study aims to know the relationship and impact of growth rate of foreign direct investment (FDI) in India on growth rate of GDP in India. The study used correlation analysis and regression analysis. It found that there existed insignificant relationship between the growth rate of FDI and economic growth rate. Also, the results of regression analysis indicated the no significant impact of growth rate of FDI on growth rate of GDP. Keywords: FDI, GDP, Economic growth, Indian economy JEL Classifications: E01, F21, F43 DOI: https://doi.org/10.32479/ijefi.10463
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spelling doaj.art-5dcc2d917f9944c2802eea8f94b0d4822023-02-15T16:07:36ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382020-09-01105A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of IndiaSharil SharmaManpreet KaurPreeti SharmaSukhmani SandhuOne of the main pointers of the health of any economy is its Gross Domestic Product (GDP). It indicates the size of the economy. It also helps in determining and comparing the growth of economy over different periods and also with that of other economies. Investment is the major factor that contributes to the growth of GDP. Increase in level of investment leads to the multiplier impact on increasing the levels of employment and income. There is significant role of Foreign Investment in open economies. Such investment can be direct or indirect. The current study aims to know the relationship and impact of growth rate of foreign direct investment (FDI) in India on growth rate of GDP in India. The study used correlation analysis and regression analysis. It found that there existed insignificant relationship between the growth rate of FDI and economic growth rate. Also, the results of regression analysis indicated the no significant impact of growth rate of FDI on growth rate of GDP. Keywords: FDI, GDP, Economic growth, Indian economy JEL Classifications: E01, F21, F43 DOI: https://doi.org/10.32479/ijefi.10463 http://mail.econjournals.com/index.php/ijefi/article/view/10463
spellingShingle Sharil Sharma
Manpreet Kaur
Preeti Sharma
Sukhmani Sandhu
A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
International Journal of Economics and Financial Issues
title A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
title_full A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
title_fullStr A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
title_full_unstemmed A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
title_short A Study of Relationship and Impact of Foreign Direct Investment on Economic Growth Rate of India
title_sort study of relationship and impact of foreign direct investment on economic growth rate of india
url http://mail.econjournals.com/index.php/ijefi/article/view/10463
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