IDEAS home Printed from https://ideas.repec.org/a/mth/ber888/v6y2016i1p111-128.html
   My bibliography  Save this article

Impact of Foreign Direct Investment Inflows on Capital Account of India¡¯s Balance of Payments

Author

Listed:
  • Mohd Nayyer Rahman

Abstract

Transfer of capital from one country to another has been unrestricted in the present era of globalisation. The capital transfer may take one form or the other. One of the forms of capital transfer is Foreign Direct Investment Inflows (FDI Inflows) and it is an integral determinant of Capital for developing countries. FDI means the investment of funds by a foreign entity (particularly a Transnational or Multinational Company) by creating new equity base in host or home economy or vice versa. As FDI Inflow is a macroeconomic variable, it is represented in the balance sheet of the country known as Balance of Payments (BOP). The balance of payments of a country is a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries during a given period of time. To identify the happenings in the international payments, a record of the transactions between countries is necessary. The record of such transactions is made in the balance of payments account. The paper aims to measure the impact of FDI Inflows on Capital Account of India¡¯s BOP. The time period for the study is 1991-1992 to 2014-15.

Suggested Citation

  • Mohd Nayyer Rahman, 2016. "Impact of Foreign Direct Investment Inflows on Capital Account of India¡¯s Balance of Payments," Business and Economic Research, Macrothink Institute, vol. 6(1), pages 111-128, June.
    • Handle: RePEc:mth:ber888:v:6:y:2016:i:1:p:111-128
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/8965/7303
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/8965
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Catão, Luis A.V. & Milesi-Ferretti, Gian Maria, 2014. "External liabilities and crises," Journal of International Economics, Elsevier, vol. 94(1), pages 18-32.
    2. Kocenda, Evzen & Cerný, Alexandr, 2017. "Elements of Time Series Econometrics," University of Chicago Press Economics Books, University of Chicago Press, edition 3, number 9788024631998, Febrero.
    3. World Bank, 1993. "Global Economic Prospects and the Developing Countries 1993," World Bank Publications - Books, The World Bank Group, number 32388.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aggarwal, Divya, 2019. "Do bitcoins follow a random walk model?," Research in Economics, Elsevier, vol. 73(1), pages 15-22.
    2. Zauder Krunoslav, 2024. "Interest Rate Exposure of Households in Croatia: A Simulation of the National Reference Rate," Zagreb International Review of Economics and Business, Sciendo, vol. 27(2), pages 249-267.
    3. Honda, Jiro & Tapsoba, René & Issifou, Ismael, 2022. "When do we repair the roof? Insights from responses to fiscal crisis early warning signals," International Economics, Elsevier, vol. 172(C), pages 349-367.
    4. Wenwen Sheng & M. C. Sunny Wong, 2017. "Capital Flow Management Policies and Riskiness of External Liability Structures: the Role of Local Financial Markets," Open Economies Review, Springer, vol. 28(3), pages 461-498, July.
    5. Arazmuradov, Annageldy, 2016. "Assessing sovereign debt default by efficiency," The Journal of Economic Asymmetries, Elsevier, vol. 13(C), pages 100-113.
    6. Kristin Forbes & Ida Hjortsoe & Tsvetelina Nenova, 2017. "Current Account Deficits During Heightened Risk: Menacing or Mitigating?," Economic Journal, Royal Economic Society, vol. 0(601), pages 571-623, May.
    7. Qian, Xingwang & Steiner, Andreas, 2017. "International reserves and the maturity of external debt," Journal of International Money and Finance, Elsevier, vol. 73(PB), pages 399-418.
    8. Stefan Avdjiev & Bryan Hardy & Şebnem Kalemli-Özcan & Luis Servén, 2022. "Gross Capital Flows by Banks, Corporates, and Sovereigns," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 2098-2135.
    9. Mr. Cian Allen & Camila Casas & Mr. Giovanni Ganelli & Luciana Juvenal & Mr. Daniel Leigh & Mr. Pau Rabanal & Cyril Rebillard & Jair Rodriguez & João Tovar Jalles, 2023. "2022 Update of the External Balance Assessment Methodology," IMF Working Papers 2023/047, International Monetary Fund.
    10. Zorell, Nico, 2017. "Large net foreign liabilities of euro area countries," Occasional Paper Series 198, European Central Bank.
    11. Maurice Obstfeld, 2014. "Never Say Never: Commentary on a Policymaker’s Reflections," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 62(4), pages 656-693, November.
    12. Maas, Daniel & Mayer, Eric & Rüth, Sebastian K., 2018. "Current account dynamics and the housing cycle in Spain," Journal of International Money and Finance, Elsevier, vol. 87(C), pages 22-43.
    13. Cheng, Gong, 2015. "Balance sheet effects, foreign reserves and public policies," Journal of International Money and Finance, Elsevier, vol. 59(C), pages 146-165.
    14. C. Goodhart & C. Xu, 1996. "The Rise of China as an Economic Power," National Institute Economic Review, National Institute of Economic and Social Research, vol. 155(1), pages 56-80, February.
    15. Camarero, Mariam & Gadea-Rivas, María Dolores & Gómez-Loscos, Ana & Tamarit, Cecilio, 2021. "Effects of external imbalances on GDP recovery patterns," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 349-362.
    16. Catão, Luis A.V. & Milesi-Ferretti, Gian Maria, 2014. "External liabilities and crises," Journal of International Economics, Elsevier, vol. 94(1), pages 18-32.
    17. Medas, Paulo & Poghosyan, Tigran & Xu, Yizhi & Farah-Yacoub, Juan & Gerling, Kerstin, 2018. "Fiscal crises," Journal of International Money and Finance, Elsevier, vol. 88(C), pages 191-207.
      • Mrs. Kerstin Gerling & Mr. Paulo A Medas & Mr. Tigran Poghosyan & Juan Farah-Yacoub & Yizhi Xu, 2017. "Fiscal Crises," IMF Working Papers 2017/086, International Monetary Fund.
    18. Eberhardt, Markus & Presbitero, Andrea F., 2021. "Commodity prices and banking crises," Journal of International Economics, Elsevier, vol. 131(C).
    19. Xinhua Gu & Chun Kwok Lei & Qingbin Zhao & Nian Liu, 2024. "Different experiences of Asian emerging‐market economies in the two major financial crises," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3286-3308, July.
    20. Goodhart, C. A. E. & Xu, Chenggang, 1996. "The rise of China as an economic power," LSE Research Online Documents on Economics 3753, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    FDI Inflows; Capital Account; Granger Causality; Vector Auto Regression;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ber888:v:6:y:2016:i:1:p:111-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/ber .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.