FDI and Economic Growth in India

Narayan Sethi and Sanhita Sucharita

ISBN 10: 8131605906 / ISBN 13: 9788131605905

Published by Rawat Publications, 2013

About this Item

The gains from FDI inflows are unquestionable as it contributes to economic growth through an increase in productivity by providing new investments, better technologies and managerial skills to the host country. While the trade liberalization facilitates economic growth through efficiency in production by utilizing the abundant factors of production more effectively and absorbing better technologies from advanced countries on the one hand, it may harm the growth process through various forms of macro-economic instability and balance of payments crisis, on the other. Thus, it is a challenge for developing countries like India to explore the role FDI and trade liberalization should play in the country s economic growth. This book examines the relationship between FDI and economic growth in Indian context, and also identifies the motivating factors and problems of FDI inflows. We employ bi-variate regression and ordinary least squares (OLS) estimation to examine the effect of FDI on GDP growth using the data for the period 1974-2011. The results show that FDI is positively correlated with GDP growth and has positive effect on economic growth too. The book will interest both policy makers and students and teachers of economics alike.

Seller Inventory # 111982

Bibliographic Details

• Title: FDI and Economic Growth in India
• Publisher: Rawat Publications
• Publication Date: 2013
• Language: English
• ISBN 10: 8131605906
• ISBN 13: 9788131605905
• Binding: Hardcover
• Edition: 1st Edition
• Condition: New
• Dust Jacket Condition: New

About this title

Synopsis

The gains from foreign direct investment (FDI) inflows are unquestionable, as they contribute to economic growth through an increase in productivity by providing new investments, better technologies, and managerial skills to the host country. While trade liberalization facilitates economic growth through efficiency in production, by utilizing the abundant factors of production more effectively and absorbing better technologies from advanced countries, it may also harm the growth process through various forms of macro-economic instability and balance of payments crisis. Thus, it is a challenge for developing countries like India to explore the role FDI and trade liberalization should play in the country's economic growth. This book examines the relationship between FDI and economic growth in India, and it also identifies the motivating factors and problems of FDI inflows. The book employs bi-variate regression and ordinary least squares (OLS) estimation to examine the effect of FDI on gross domestic product (GDP) growth, using data for the period of 1974-2011. The results show that FDI is positively correlated with GDP growth and has a positive effect on India's economic growth.