Social and Behavioral Sciences Commons^™

Determinants Of Foreign Direct Investment In An Emerging Market Economy: Evidence From India, Carlos Resende Jr.

Empirical Economic Bulletin, An Undergraduate Journal

Over the past few years, India has recorded a substantial increase in the level of annual foreign direct investment (FDI) inflows. This paper examines the relationship between foreign direct investment and domestic investment, while using the ordinary least squared technique, and a time series analysis from the period 1979-2008. Building on the prior literature, this paper provides an empirical analysis of domestic determinants of FDI such as size of market, openness to trade, infrastructure, attractiveness to domestic market, and exchange rate instability. In addition, this paper will include technology growth and specific variables to examine local determinates of FDI in …