The present article attempts to identify the causal nexus among real exchange rate (RER), its volatility and foreign direct investment (FDI) inflows in India using quarterly data from 1990:II to 2008:I. Generalized Auto Regressive Conditional Heteroscedasticity (GARCH) model is employed to...

The contentious role that foreign direct investment (FDI) plays in the development of an economy has been under much scrutiny since the Asian crisis of 1997. While one school of thought strongly believes that FDI has a positive relationship with the creation of jobs and dissemination of skills...

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large...

Operating performance of a firm is dependent on many factors of which foreign investment today is considered a highly crucial one. This is more so in a developing open economy like India where domestic capital base for targeted growth is relatively weak. Evidences of relationship between foreign...

Nearly two decades of economic liberalization, coupled with robust domestic demand, an emerging middle class, a young population, a high return on investment , cost competitiveness and an epic pool of talent endures to transform India as one of the most preferred destinations for FDI. India's...

This paper examines the impact of daily foreign institutional investors' (FIIs) investments on the Indian market from January 2010 through January 2014. The motivation for the study is that the past studies on this topic are based only on examining the relationship between FII investments in...

This paper attempts to test the hypothesis of complementary/substitution relationship between Foreign Direct Investment (FDI) and foreign trade in India with here selected trade partners using co-integration technique and error correction framework. The data used are quarterly from 1992 II to...

Though Japan had been one of the top five investors in India for long, its share in India’s total FDI inflows has been dwindling since 2000. Other countries have surpassed Japan in terms of their investment and market share in the Indian economy. In this context, this study attempts to analyse...

Using count data on Indian joint ventures (JVs) and wholly owned subsidiaries (WOS), we present an empirical analysis of FDI-related ownership choices and their relation with host country characteristics and indicators of transaction costs. Our Negative Binomial regression models offer only weak...

We empirically assess the determinants of India’s FDI outflows across a large sample of host countries in the 1996-2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India’s outward FDI is hardly affected...