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...
Main Authors: | , , , |
---|---|
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 |
_version_ | 1797923752729640960 |
---|---|
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
|
first_indexed | 2024-04-10T14:51:09Z |
format | Article |
id | doaj.art-5dcc2d917f9944c2802eea8f94b0d482 |
institution | Directory Open Access Journal |
issn | 2146-4138 |
language | English |
last_indexed | 2024-04-10T14:51:09Z |
publishDate | 2020-09-01 |
publisher | EconJournals |
record_format | Article |
series | International Journal of Economics and Financial Issues |
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 |
work_keys_str_mv | AT sharilsharma astudyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT manpreetkaur astudyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT preetisharma astudyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT sukhmanisandhu astudyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT sharilsharma studyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT manpreetkaur studyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT preetisharma studyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia AT sukhmanisandhu studyofrelationshipandimpactofforeigndirectinvestmentoneconomicgrowthrateofindia |