Abstract
Foreign Direct Investment in India, 1980-2014: an approach to vector error correction modelling (VECM)
by
Munmi Saikia
The study draws the 'Dynamic or Developmental approach' of international production to build the analytical framework of the present analysis. The study is based on multivariate time-series data for the time period 1980-2014. The focus of the study is to investigate the dynamic relationship between net outward FDI and macroeconomic factors of India both in the short-run and long-run employing vector error correction modeling (VECM). The study finds that all the macroeconomic factors have long-run impact on foreign direct investment position of India (captured by net OFDI) although no causality has been witnessed in the short-run. Dynamic analysis such as impulse response function (IRF) and the forecast error variance decomposition (FEVD) are also derived to examine the long-run time path and the endogenous structure of net outward FDI and macroeconomic factors respectively.
Committee
Workshop
Key Dates
Communication
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