Theoretical and Applied Economics
No. 1 / 2020 (622), Spring
Do the macroeconomic indicators influence foreign direct investment inflow? Evidence from India
Central University of Himachal Pradesh, India
Abdul RISHAD
Central University of Himachal Pradesh, India
Abstract. This study significantly contributes to the growing literature on the dynamic link between FDI inflow and macroeconomic factors like inflation, trade openness, market size, and exchange rate in the case of India. An Autoregressive Distributed Lag bound testing approach with annual time-series data from 1975 to 2017 employed for modelling the short-run and long-run dynamics. Using Wald coefficients, the study found integration between the variables. It further discovered that variables are correcting the shock-induced disequilibrium at a speed of 86%. In the long-run trade openness and real gross domestic product positively affect the FDI inflow, whereas the exchange rate and inflation are negatively associated with FDI inflow. However, the study failed to detect any short-run association among the variables. Based on the findings, the research suggests better management of inflation and exchange rate volatility through specific policy action for attracting more global capital to the economy.
Contents
An approach to the use of cryptocurrencies in Romania using data mining technique
Intellectual property rights, human capital and types of entrepreneurship in emerging and developing countries
Trade relation between India and other BRICS countries: A multidimensional approach using Gravity Model and Granger Causality
Do the macroeconomic indicators influence foreign direct investment inflow? Evidence from India
Conceptual dimensions regarding the financial contagion and the correlation with the stock market in Romania
An analysis of poverty among the informal workers of India
Financial stress index, growth and price stability in India: Some recent evidence
Testing Wagner’s Law for sub-Saharan Africa: A panel cointegration and causality approach
A review of international Fisher’s effect focusing on inflation in Indian context for corporate decisions
Factors that influence wages differences in formal sector on male and female workers in Palembang City
Optimal Taylor rule in the new era central banking perspective
The analysis of the quarterly evolution of the gross domestic product in 2019
The analysis of the international trade of Romania
The Romanian population’s perceptions regarding income inequalities and discrimination