Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy
At the backdrop of expanding economies and in the race of attracting higher investments and enhancing exports, it becomes important to analyse the relationship between Foreign Direct Investment and Growth in terms of output of the economy. A number of studies have been conducted for analysing the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/3063 |
| _version_ | 1797921030004539392 |
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| author | Areej Aftab Siddiqui Shahid Ahmed |
| author_facet | Areej Aftab Siddiqui Shahid Ahmed |
| author_sort | Areej Aftab Siddiqui |
| collection | DOAJ |
| description |
At the backdrop of expanding economies and in the race of attracting higher investments and enhancing exports, it becomes important to analyse the relationship between Foreign Direct Investment and Growth in terms of output of the economy. A number of studies have been conducted for analysing the relationship and impact of FDI on Growth of the aggregate economy. This paper aims at assessing the impact and relationship of FDI and Growth with each other at the sectoral level. The impact is examined through Panel co-integration test followed by Random effects model. Granger causality test is also applied to assess the causation of each of these. The results indicate that Growth has an impact on FDI but FDI doesn't have an impact on Growth at the sectoral level.
Keywords: Foreign Direct Investment, Growth, Sectors
JEL Classifications: F21, O4, I25, I28, C33 |
| first_indexed | 2024-04-10T14:10:13Z |
| format | Article |
| id | doaj.art-b17c9e1d66974c3c87f573e84c23fa1c |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:10:13Z |
| publishDate | 2017-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-b17c9e1d66974c3c87f573e84c23fa1c2023-02-15T16:09:48ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-06-0173Impact of Foreign Direct Investment on Sectoral Growth of Indian EconomyAreej Aftab Siddiqui0Shahid Ahmed1Jamia Millia Islamia Indian Institute of Foreign Trade, New Delhi, IndiaJamia Millia Islamia, New Delhi, India At the backdrop of expanding economies and in the race of attracting higher investments and enhancing exports, it becomes important to analyse the relationship between Foreign Direct Investment and Growth in terms of output of the economy. A number of studies have been conducted for analysing the relationship and impact of FDI on Growth of the aggregate economy. This paper aims at assessing the impact and relationship of FDI and Growth with each other at the sectoral level. The impact is examined through Panel co-integration test followed by Random effects model. Granger causality test is also applied to assess the causation of each of these. The results indicate that Growth has an impact on FDI but FDI doesn't have an impact on Growth at the sectoral level. Keywords: Foreign Direct Investment, Growth, Sectors JEL Classifications: F21, O4, I25, I28, C33http://mail.econjournals.com/index.php/ijefi/article/view/3063 |
| spellingShingle | Areej Aftab Siddiqui Shahid Ahmed Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy International Journal of Economics and Financial Issues |
| title | Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy |
| title_full | Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy |
| title_fullStr | Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy |
| title_full_unstemmed | Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy |
| title_short | Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy |
| title_sort | impact of foreign direct investment on sectoral growth of indian economy |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/3063 |
| work_keys_str_mv | AT areejaftabsiddiqui impactofforeigndirectinvestmentonsectoralgrowthofindianeconomy AT shahidahmed impactofforeigndirectinvestmentonsectoralgrowthofindianeconomy |