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Bivariate Causality between FDI Inflows and Economic Growth in India Since 1990
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Author(s): Behrooz Shahmoradi (University of Mysore, India)and Enayatallah Najibzadehr (University of Mysore, India)
Copyright: 2010
Pages: 3
Source title:
Pervasive Computing for Business: Trends and Applications
Source Author(s)/Editor(s): Varuna Godara (CEO of Sydney College of Management, Australia)
DOI: 10.4018/978-1-60566-996-0.ch015
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Abstract
Nowadays, most of the countries in the world mostly concentrate on the flow of FDI, because it has direct relationship with economic development. The present study attempts to make a contribution in this context, by analyzing the existence and nature of causalities, if any, between FDI and economic growth in India since 1990, where growth of economic activities and FDI has been one of the most pronounced. The results indicate that there is a strong correlation between FDI inflows and GDP in India. And also there is unidirectional causal relation between FDI and GDP. Finally as co-integration shows there is no long run relationship between FDI and economic growth in India.
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