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FOREIGN DIRECT INVESTMENT AND GROWTH OF INDIA: DOES FINANCIAL SECTOR DEVELOPMENT HELP IN IMPROVING ABSORPTIVE CAPACITY?

International Journal of Business and Society

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Title FOREIGN DIRECT INVESTMENT AND GROWTH OF INDIA: DOES FINANCIAL SECTOR DEVELOPMENT HELP IN IMPROVING ABSORPTIVE CAPACITY?
 
Creator Jayaraman, T. K.
Choong, Chee -Keong
Ng, Cheong -Fatt
 
Description This paper investigates whether there exists a long term relationship between foreign direct investment (FDI) and economic growth in India with special reference to the role of financial sector development (FSD), which is now considered as a critical contingent factor as borne out by recent empirical studies elsewhere. A 35 -year period (1979-2013), which is covered by this paper, witnessed gradual introduction of economic reforms picking up speed from early 1990s. The doors were opened to FDI. Undertaking an empirical study on FDI’s contribution to growth of Indian economy by taking into account the role of financial sector development (FSD) as a contingent factor, this paper concludes that FDI and FSD have contributed to growth. It is also confirmed that the interaction term between FDI and financial development indicates a complementary relationship between the two. Keywords: India; FDI; FSD; Growth; Threshold Level; Interaction Effect.
 
Publisher Faculty of Economics and Business, UNIMAS
 
Date 2017-11-17
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://publisher.unimas.my/ojs/index.php/IJBS/article/view/495
 
Source International Journal of Business and Society; Vol 18 No 1 (2017): International Journal of Business and Society
1511-6670
 
Language eng
 
Relation http://publisher.unimas.my/ojs/index.php/IJBS/article/view/495/435
 
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