The effects of foreign direct investment in India: Evidence from selected industries during the period of 2004 - 2008
Ricky, Shah (2012) The effects of foreign direct investment in India: Evidence from selected industries during the period of 2004 - 2008. [Dissertation (University of Nottingham only)] (Unpublished)
India over the last 20 years has seen a significant difference in its economy due to changes in its trade Liberalisation laws of 1991. After changing the trade laws India has become a global economy and has seen a rise in foreign investors looking for business opportunities which has boosted foreign capital into its economy. The purpose of this research was to find the effect of foreign direct investment inflows in India using Prowess panel data on five industries which include Automobile, Telecommunication, Construction, Energy Generation and Transport. A fixed effect multiple regression model was generated using the Cobb-Douglass production function to analyse this data. The results showed a positive significance of FDI inflow on productivity hence meeting the hypothesis. This research is important as it allows for a clear understanding of how FDI affects India and what measures can be taken to improve this relationship.
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