Government Policies and Foreign Direct Investment Inflows: Evidence from Infrastructure Sector in India

Faniband, Muhammadriyaj; Arote, Prajakta; Jadhav, Pravin

doi:10.1007/978-981-16-6936-1_23

Cited by 3 publications

(5 citation statements)

References 16 publications

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“…The positive link between the said variables accepted the fourth hypothesis. The finding is also verified by some of the literature evidence [10,11,29,42]. The possible interpretation for this positive relationship between the above-said variables is that the increase in exchange rate enhances the confidence of foreign investors for their investment to increase in value in terms of the host country's currency, therefore, the investors enhance their investment inflow in the host nation for "middle-income" economies.…”

Section: Empirical Analysissupporting

confidence: 70%

“…The highly significant and negative relationship between inflation rate and "FDI inflow" accepts the fifth hypothesis. The significant relationship between above said variables are verified in some studies [4,7,11,29,42]. The possible reason for this highly significant and negative impact is that the average inflation rate is lower in the case of "middle-income" economies while the average "FDI inflow" is higher as compared to "low-income" economies.…”

Section: Empirical Analysismentioning

confidence: 77%

“…The past literature in this domain provides a large number of evidence in support of the positive and significant relationship between the exchange rate and "FDI inflow" for different panels such as [11] for developing countries' panels; [29] in the case of postcommunist regions; [10] in the case of a panel of the ASEAN region; and, finally, [42] in the case of India. However, some of the research studies in the past could not provide a significant impact of the exchange rate on "FDI inflow" for different panels, countries, or regions such as [12] in the case of Africa; [39] in the case of developing economies; [8] in the case of developing nations again; and, finally, [42] in the case of India. The analysis of the historical literature evidence revealed that a comparative analysis between "low-income" and "middle-income" countries in the present domain is missing.…”

Section: H 3 Real Growth Rate Significantly Increases "Fdi Inflow"mentioning

confidence: 99%

“…The study forms the fourth hypothesis based on a majority of evidence in support of the positive and significant impact of the exchange rate on "FDI inflow" as the secondary objective. Finally, a large number of studies reported a negative and statistically strong impact of inflation on "FDI inflow" in different time series and panel data analyses such as [11] for developing countries' panels; [29] in the case of post-communist regions; [7] in the case of Pakistan; [4] in the case of a panel of seven selected countries from the ASEAN region; and, finally, [42] in the case of India. However, an important study could not provide the significant impact of inflation on "FDI inflow" such as [10] in the case of a panel of some of the ASEAN region countries.…”

Section: H 3 Real Growth Rate Significantly Increases "Fdi Inflow"mentioning

confidence: 99%

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Sustainable Economic Growth and FDI Inflow: A Comparative Panel Econometric Analysis of Low-Income and Middle-Income Nations

2022

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The study examines the effect of sustainable economic growth on “FDI inflow” using comparative panel econometrics on two panels: “low-income” and “middle-income” economies between 1970 and 2021. For this, 18 “low-income” and 53 “middle-income” economies constitute the sample. The data were retrieved from the “world development indicator” website. Pre-diagnostic and post-diagnostic estimations were performed using static panel and dynamic panel approaches. Sustainable growth increases “FDI inflow” in “low-income” and “middle-income” economies during the study period, according to the findings. In addition, trade openness and the exchange rate have the potential to boost “FDI inflow” in “low-income” economies. Similarly, in “middle-income” economies, the real growth rate and exchange rate are significant boosts, however inflation significantly reduces the “FDI inflow”. The findings show that policymakers in “low-income” and “middle-income” economies should maintain long-term, sustainable economic growth in order to attract more “FDI inflow” in their respective economies. Compared to the current state of knowledge in the subject, the study’s findings provide evidence for “low-income” and “middle-income” nations that have been mainly overlooked in terms of sustainable growth for attracting FDI inflow. The study’s outcomes are applicable and generalizable only for “middle-income” and “low-income” economies. Future researchers may include additional control factors and expand the scope of the study to include “high-income” groups.

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Section: Empirical Analysissupporting

confidence: 70%

Section: Empirical Analysismentioning

confidence: 77%

Section: H 3 Real Growth Rate Significantly Increases "Fdi Inflow"mentioning

confidence: 99%

Section: H 3 Real Growth Rate Significantly Increases "Fdi Inflow"mentioning

confidence: 99%

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Sustainable Economic Growth and FDI Inflow: A Comparative Panel Econometric Analysis of Low-Income and Middle-Income Nations

2022

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“…Professor Ian Bremmer argues that China is generating a form of state capitalism, in which the state controls the commanding heights of the economy in the form of state-owned, state-sponsored, or private yet state-loyal corporations and wealth funds (Bremmer, 2010;Choudhury & Nayak, 2019). According to various empirical studies, FDI in a particular country is affected by variables like market size, trade openness, exchange rate, institutional quality, political stability, business environment, policy variables, and so on (Faniband et al, 2022;Jadhav, 2012;Jadhav & Katti, 2012;Jadhav et al, 2020;Justin & Jadhav, 2020).…”

Section: Theoretical Framework and The Literature Reviewmentioning

confidence: 99%

Capturing the Growth of Chinese Investment in India

Choudhury¹

2023

The Indian Economic Journal

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Chinese foreign direct investment inflows in India increased from just US $1 million in 2010 to the US $173 million in 2019, while the total private equity investment was US $3,423 million in the same period. Chinese companies emerged as majority shareholders in several Indian start-ups, particularly in the technology sector. In contrast to this economic development, there has been a constant clash among the borders, noticeably in the Dokhlam and Galwan valleys with a few other minor clashes in different areas. Both nations are experiencing a booming economic alliance and shrinking political and diplomatic relations at the same time. In this background, the current article attempts to explore the key factors influencing the Chinese to invest in India. This article also attempts to analyse the nature of Chinese investment and explain why many countries look at Chinese investment with suspicion. Applying the regression model, the study finds that various policy variables played a significant role in attracting Chinese investors to India. JEL Classification: P33, F10, F50

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