Incentives to Attract Foreign Direct Investment in Emerging Economies: A Causality Analysis for the Indian Case

Incentives to Attract Foreign Direct Investment in Emerging Economies: A Causality Analysis for the Indian Case

Ishita Ghoshal, Ishita Ghosh
ISBN13: 9781522523451|ISBN10: 1522523456|EISBN13: 9781522523468
DOI: 10.4018/978-1-5225-2345-1.ch014
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MLA

Ghoshal, Ishita, and Ishita Ghosh. "Incentives to Attract Foreign Direct Investment in Emerging Economies: A Causality Analysis for the Indian Case." Outward Foreign Direct Investment (FDI) in Emerging Market Economies, edited by Tomasz Dorożyński and Anetta Kuna-Marszałek, IGI Global, 2017, pp. 258-292. https://doi.org/10.4018/978-1-5225-2345-1.ch014

APA

Ghoshal, I. & Ghosh, I. (2017). Incentives to Attract Foreign Direct Investment in Emerging Economies: A Causality Analysis for the Indian Case. In T. Dorożyński & A. Kuna-Marszałek (Eds.), Outward Foreign Direct Investment (FDI) in Emerging Market Economies (pp. 258-292). IGI Global. https://doi.org/10.4018/978-1-5225-2345-1.ch014

Chicago

Ghoshal, Ishita, and Ishita Ghosh. "Incentives to Attract Foreign Direct Investment in Emerging Economies: A Causality Analysis for the Indian Case." In Outward Foreign Direct Investment (FDI) in Emerging Market Economies, edited by Tomasz Dorożyński and Anetta Kuna-Marszałek, 258-292. Hershey, PA: IGI Global, 2017. https://doi.org/10.4018/978-1-5225-2345-1.ch014

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Abstract

The study delves into a diagnostic check for macroeconomic factors that may cause and explain outward FDI flows to India as a representative of the emerging economies. The seventeen top investing economies to India across the period from 2008-14 reveal that overall FDI outflows, inflation, exchange rate and growth of the economy affect FDI outflows to India in the long run where only exchange rate has a causal effect. Also, the above-mentioned variables except growth along with the size of the economy has significant effect on the extent of FDI flows to India from the economies considered for the study.

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