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The trend of FDI inflows and its impact on the Indian economy

Author

Listed:
  • Sushanta Kumar TARAI

    (Berhampur University, Odisha, India)

  • Sudhakar PATRA

    (Berhampur University, Odisha, India)

  • Dhananjoy DATTA

    (The ICFAI University, Tripura, India)

Abstract

More the capital more the industries can be lead to more employability. Hence, current paper aims to analyze the trend and pattern of FDI and its impact on the Indian economy using uses stepwise regression to select the appropriate variables with time series data over thirty years from 1992-2021 and found that there is a positive trend of FDI inflow into the country over the study period and the intersection between FDI and GDP is very high and the foreign exchange reserve is also very high, Moreover, foreign exchange reserves and interest rates have a significant relationship with FDI.

Suggested Citation

  • Sushanta Kumar TARAI & Sudhakar PATRA & Dhananjoy DATTA, 2024. "The trend of FDI inflows and its impact on the Indian economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 67-86, Summer.
    • Handle: RePEc:agr:journl:v:xxxi:y:2024:i:2(639):p:67-86
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    References listed on IDEAS

    as
    1. Schnitzer, Monika, 1997. "Debt vs. Foreign Direct Investment: The Impact of Sovereign Risk on the Structure of International Capital Flows," CEPR Discussion Papers 1608, C.E.P.R. Discussion Papers.
    2. Satomi Kimino & David S. Saal & Nigel Driffield, 2007. "Macro Determinants of FDI Inflows to Japan: An Analysis of Source Country Characteristics," The World Economy, Wiley Blackwell, vol. 30(3), pages 446-469, March.
    3. Ms. Elif C Arbatli Saxegaard, 2011. "Economic Policies and FDI Inflows to Emerging Market Economies," IMF Working Papers 2011/192, International Monetary Fund.
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    More about this item

    Keywords

    employment; FDI; GDP; growth; inflation.;
    All these keywords.

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