Asymmetric Effects of Foreign Direct Investment on Economic Growth: Fresh Evidence from India Using NARDL Simulation

IF 1.3 Q1 AREA STUDIES

Millennial Asia Pub Date : 2022-10-30 DOI:10.1177/09763996221122205

Waseem Alam, Firdos Ikram, Pushpam Kumar, M. Haseeb, Nazim Ali

引用次数: 4

Abstract

The present article aims to examine the asymmetric effects of foreign direct investment (FDI) on economic growth in India during 1991–2019. Along with FDI, financial development, inflation and trade openness are used as control variables. To check the influence of these variables on economic growth, this study employed the non-linear autoregressive distributed lag (NARDL) model. The results indicate that a positive shock in FDI inflows positively influences India’s economic growth while negative FDI inflows have a negative influence. Also, the Wald test establishes the asymmetric effect of FDI on gross domestic product (GDP) growth both in the short-run and long run. Moreover, financial development and inflation rate significantly reduce the pace of economic growth in both the long run and the short run. However, trade openness boosts economic growth only in the long run. Based on these empirical findings, several policy implications are designed to increase the pace of economic growth.

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外国直接投资对经济增长的非对称效应：来自印度的NARDL模拟的新证据

本文旨在研究1991-2019年外国直接投资(FDI)对印度经济增长的不对称影响。与FDI一起，金融发展、通货膨胀和贸易开放作为控制变量。为了检验这些变量对经济增长的影响，本研究采用非线性自回归分布滞后(NARDL)模型。研究结果表明，FDI流入的正向冲击对印度经济增长有正向影响，而FDI流入的负向冲击对印度经济增长有负向影响。此外，沃尔德检验建立了FDI对国内生产总值(GDP)增长在短期和长期的不对称效应。此外，金融发展和通货膨胀率在长期和短期内都显著降低了经济增长的速度。然而，贸易开放只能从长远角度促进经济增长。基于这些实证研究结果，本文提出了几项旨在加快经济增长速度的政策建议。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Millennial Asia AREA STUDIES-

CiteScore

4.50

自引率

12.50%

发文量

期刊介绍： Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.

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