Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy

Authors

  • Areej Aftab Siddiqui Jamia Millia Islamia Indian Institute of Foreign Trade, New Delhi, India
  • Shahid Ahmed Jamia Millia Islamia, New Delhi, India

Abstract

At the backdrop of expanding economies and in the race of attracting higher investments and enhancing exports, it becomes important to analyse the relationship between Foreign Direct Investment and Growth in terms of output of the economy.  A number of studies have been conducted for analysing the relationship and impact of FDI on Growth of the aggregate economy. This paper aims at assessing the impact and relationship of FDI and Growth with each other at the sectoral level. The impact is examined through Panel co-integration test followed by Random effects model. Granger causality test is also applied to assess the causation of each of these. The results indicate that Growth has an impact on FDI but FDI doesn't have an impact on Growth at the sectoral level.Keywords: Foreign Direct Investment, Growth, SectorsJEL Classifications: F21, O4, I25, I28, C33

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Author Biographies

Areej Aftab Siddiqui, Jamia Millia Islamia Indian Institute of Foreign Trade, New Delhi, India

Research Scholar, Jamia Millia IslamiaAssistant Professor, Indian Institute of Foreign Trade

Shahid Ahmed, Jamia Millia Islamia, New Delhi, India

Professor and Head, Department of Economics,Jamia Millia Islamia, New Delhi, India

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Published

2017-06-29

How to Cite

Siddiqui, A. A., & Ahmed, S. (2017). Impact of Foreign Direct Investment on Sectoral Growth of Indian Economy. International Journal of Economics and Financial Issues, 7(3), 477–488. Retrieved from https://econjournals.com.tr/index.php/ijefi/article/view/3063

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