TRENDS AND PATTERNS OF FLOW OF FDI IN DEVELOPED COUNTRIES AND DEVELOPING COUNTRIES: A COMPARISON

Authors

  • DR NAMITA RAJPUT Associate Professor in Commerce, Sri Aurobindo College (M), University of Delhi

Keywords:

discriminatory measures, Investment, Trade, Economic Growth, Restrictiveness index.

Abstract

Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. It has in lot of ways facilitated India to achieve a certain degree of financial stability, growth and development. The objective of the paper is to analyse the trends of Inflows during 1991-2011(study period) in India and to know about the global scenario and to examine the relationship of liberalised regime pursued by the countries with the level of FDI stock. To empirically test this relationship, Regression analysis was carried out between FDI Restrictiveness Index (FDI Index) and level of FDI stock and the results reveal a significant relationship between this index and the level of FDI stock. This index measures statutory restriction, all discriminatory measures affecting foreign investors, including market, access restrictions and departures from national treatment and gives scores to the respective countries in this endeavour. This study will give more insights about the policy framework to be followed by the countries to increase the flow of FDI inflows especially in the developing countries as for them this is the engine for economic growth.

References

A S Shiralashetti & S S Hugar (2009),Foreign Direct Investment and economic Development Of India ,a diagnostic Study,ICFAI university a journal of managerial economics,vol 7,No1.

Balasubramanyam V.N, Sapsford David (2007): “Does India need a lot more FDI”, Economic and Political Weekly, pp.1549-1555.

Basu P., Nayak N.C, Archana (2007): “Foreign Direct Investment in India:Emerging Horizon”, Indian Economic Review, Vol. XXXXII. No.2, pp. 255-266.

Caves, R. 1996. Multinational Enterprise and Economic Analysis. Cambridge, England: Cambridge University Press.

Chandan Chakraborty, Peter Nunnenkamp (2006): “Economic Reforms, FDI and its Economic Effects in India”, www.iipmthinktank.com/publications/archieve.

Kulwinder Singh (2005): “Foreign Direct Investment in India: A Critical analysis of FDI from 1991-2005”, papers.ssrn.com/sol3/papers.cfm_id_822584.

Morris Sebastian (1990): “Foreign Direct Investment from India: 1964-83”,Economic and Political Weekly, Vol. 31, pp. 2314-2331.

Markusen, J. 1995. “The Boundaries of Multinational Enterprises and the Theory of International Trade.” Journal of Economic Perspectives 9: 169-89.

NagaRaj R (2003): “Foreign Direct Investment in India in the 1990s: Trends and Issues”, Economic and Political Weekly, pp.1701-1712.

Narayan, Chandra & Pradhan “Nexus between FDI flows and Economic Growth of International Economy”, Volume 2,Issue 1,Jan-June (2011).

Nayak D.N (1999): “Canadian Foreign Direct Investment in India: Some Observations”, Political Economy Journal of India, Vol 8, No. 1, pp. 51-56.

Nirupam Bajpai and Jeffrey D. Sachs (2006): “Foreign Direct Investment in India: Issues and Problems”, Harvard Institute of International Development, Development Discussion Paper No. 759, March.

Vohra & Sehgal (2011),”An inclusive study of Foreign Investment in Indian economy”, APJRBM, issue 2,volume 6 ,(june,2011).

Downloads

Published

2022-01-07

How to Cite

DR NAMITA RAJPUT. (2022). TRENDS AND PATTERNS OF FLOW OF FDI IN DEVELOPED COUNTRIES AND DEVELOPING COUNTRIES: A COMPARISON. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE & INTERDISCIPLINARY RESEARCH ISSN: 2277-3630 Impact Factor: 7.429, 11(01), 38–54. Retrieved from http://www.gejournal.net/index.php/IJSSIR/article/view/73