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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS
Uploaded by Mitali Pitkar For the economic development of a country, an important role is played by Foreign Direct Investment (FDI). In this research paper, we are dealing with effect of FDI inflows on Indian economy… Full description
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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS ANALYSIS Priya Dwivedi1 and Jyoi !ad"e1 Corre#$ondin" A%&or: Priya Dwivedi
An'ia !a#ande
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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS
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A!STRACT
For the economic development of a country, an important role is played by Foreign Direct Investment (FDI). In this research paper, we are dealing with effect of FDI inflows on Indian economy. The relationship between FDI inflow and GD especially in service sector have b investigated and a statistical model was developed on economic data. !fter the analysis we conclude that FDI have positive and significant impact on GD.
INTROD2CTION
Foreign capital has significant role for every national econo my regardless of its level of development. For the developed countries it is necessary to support sustainable developmen the developing countries, it is used to increase accumulation You're Reading a Previewand rate of investments to crea conditions for more intensive economic growth. Foreign capital can finance investment and Unlock increase full access with free trial. o f living in the developing w stimulate economic growth, thus helping the astandard India is the second fastest growing ma"or economy in the world. India adopted a socialist Read Free Foron 30this Days Sign up to vote title Download With Free Trial approach for foreign trade and foreign direct investment.
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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS
Uploaded by Mitali Pitkar For the economic development of a country, an important role is played by Foreign Direct Investment (FDI). In this research paper, we are dealing with effect of FDI inflows on Indian economy… Full description
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FDI is widely viewed as being one of the principal vehicles for the international transfer of technology.
The ervice ector has played a dominant role in the Indian -conomy with a ./ per cent s in the GD and a growth of '0.' per cent in 100 2'0 (-conomic urvey 10'0210'', 34I). Foreign Direct Investment (FDI) has been instrumental behind the growth of service sector India. The FDI inflow between '' and 1005 had increased by /'.1 million dollars. FD contribution to service sector has grown. The flow of FDI in Indian service sector has booste the growth of Indian economy6 this sector has contributed a large share in the growth of In GD.
LITERAT2RE REVIEW
The study revealed that there was a long term relationship between FDI and service sector an also economic growth in India. FDI is the outcome of mutual interest of multinational comp and host countries. The aspects of foreign direct investment are anal y*ed by most of the stud and they also e7amined the determinants of FDI. The sector wise shift of FDI in last two dec have shown a dramatically change. There is new growth in Indian financial sector after liberali*ation insurance industry on a rapid rate. Government of India has issued new license privati*ation of Indian ban+ing sector and Reading is assumed to continue with the growth. The ne7 You're a Preview between FDI and economic growth has been a sub"ect for great discussion. Unlock full access with a free trial.
In the conte7t of increasing competition between the nations and sub2nations to attract Master your semester with Scribd FDI, Read Free For 30this Days Sign to vote on title suggests t Withinflow Free Trial investigation analy*es the emergingDownload trends of FDI intoup India. This analysis & The New York Times Useful Not useful FDI inflows show an increasing trend during the post reform period. 8ountry2wise comparis Special offer for students: Only $4.99/month.
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of FDI inflow shows increased trend as compared to other developing economics in recent y
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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS
Uploaded by Mitali Pitkar For the economic development of a country, an important role is played by Foreign Direct Investment (FDI). In this research paper, we are dealing with effect of FDI inflows on Indian economy… Full description
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RESEARC4 MET4ODOLO5Y
Corre/aion ana/y#i# ? 8orrelation analysis measures the relationship between two items e7ample, a security@s price and an indicator. The resulting value (called the Acorre coefficientA) shows if changes in one item will result in changes in the other item. :ou ca correlation analysis in two basic ways to determine the predictive ability of an indicator a determine the correlation between two securities. 8orrelation analysis is also valuable in gau the relationship between two securities. ;ften, one security@s price AleadsA or predicts the pri another security. For e7ample, the correlation coefficient of gold v ersus the dollar shows a s negative relationship. This means that an increase in the dollar usually predicts a decrease i price of gold.
Re"re##ion ana/y#i# ? 3egression analysis is a statistical tool for the investigation of relation between variables.
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Daa and varia6/e: ! lot of research have been done in order to understand the relationship
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IMPACT OF FDI INFLOW ON SERVICE SECTOR IN INDIA: AN EMPIRICAL ANALYSIS
Uploaded by Mitali Pitkar For the economic development of a country, an important role is played by Foreign Direct Investment (FDI). In this research paper, we are dealing with effect of FDI inflows on Indian economy… Full description
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The current study of FDI showed a positive and significant impact of foreign capital inflows Indian economy in order to improve ease of doing business and attracting investments. Grow in foreign investments helps improve the country&s balance of payments (4;) situation and strengthen the rupee. It can also be observed from the above analysis that at the sectoral leve the Indian economy, FDI has helped to raise the output, productivity and employment in ser sector. In future wor+, effect of FDI will be studied by ta+ing other micro2economic factors (trade openness, interest rates, e7change rates, inflation, etc.)
REFERENCES
'. !grawal Gaurav (10''), $Impact of FDI on GD? ! 8omparative tudy of 8hina and Ind International Eournal of 4usiness and #anagement, ol. , >o. '0, pp. '2.
1 -lboiashi 9osein, >oorba+hsh Farhad, aloni !lberto and !*emar 8eline (100),$The 8a 3elationships between Foreign Direct Investment (FDI), Domestic Investment (DI) and -conomic Growth (GD) in >orth !frica >on2;il roducing 8ountries? -mpirical -vidence You're Reading a Preview from 8o integration !nalysis%, !dvances in #anagement, ol. 1, >o. ''. Unlock full access with a free trial.
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/. Hadam > 3avindranath (10'1), $!ttracting Foreign Direct Investment by India? ! today& Great 8hallenge%, In ! today&s GreatDownload 8hallenge%, International Eournal of ocial Read Free Foron 30this Days Sign up to vote title cience With Free Trial Tomorrow, ol. ', >o. , pp. '25. Useful Not useful
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. =ong GuoCiang, 8hina&s olicies on FDI? 3eview and -valuation, http?JJwww.piie.
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