Symbiosis Centre for Management Studies, Symbiosis International (Deemed University)
MA, M.B.A, M.Phil., PhD
Foreign Direct Investment, International Business, International Finance
J. C. Sharmiladevi Springer Nature Singapore
Jekka Chandrasekaran Sharmiladevi IGI Global
One significant feature of liberalisation for India has been a greater openness to foreign direct investment (FDI) as a means of acquiring technologies, skills and access to international markets, and of entering dynamic trade and production. The study analyses the empirical relationship between inward FDI, economic growth and exports of India from 1970-71 to 2013-2014. The objective of this article is to investigate the relationship between FDI, economic growth and exports empirically. The error correction coefficient value indicates a 15.02% movement back towards equilibrium following a shock to the model, one time period later. OLS indicate significant long-term causality relationship among the variables with high R2 value to the tune of 0.758660. The Wald Test establishes short-run causality from economic growth to inward FDI, and from exports to inward FDI. A one-way causality relationship is running from exports to inward FDI. Economic growth causes inward FDI, but, inward FDI is not causing economic growth. Exports cause inward FDI, and inward FDI does not cause exports.
Sharmiladevi J. C. IGI Global
Globalization accompanied with internationalization enhanced urbanization across the globe. Cities and towns became the central point for economic activities, most of them fueled by the inward flow of Foreign Direct Investment (FDI) especially in the emerging economies. Globalization initiated urbanization in most of the emerging economies. As an outcome of globalization directly and with urbanization indirectly it resulted in the growth of inward foreign direct investment across the globe. This chapter makes an attempt to identify the influence of urbanization upon inward FDI and economic growth for emerging India. To study this phenomenon, data for a period of twenty years were taken from 1990- 2010. Multiple regression analysis was used. Results of the study are significant and indicate that, urbanization is playing an important role in enhancing the inflow of FDI into India in the study period. 66.9% of the changes in the dependent variable that is inward FDI is explained jointly by urbanization and economic growth, which shows that cities and towns are becoming an integral part in receiving FDI. This chapter also add some insight into the changing consumption and lifestyles of urbanites effected due to FDI.