Foreign Direct Investment - Domestic Investment Nexus: Evidence from India

IF 2.4 Q2 ECONOMICS

Contemporary Economics Pub Date : 2021-09-08 DOI:10.5709/ce.1897-9254.448

A. Babu

引用次数: 2

Abstract

The relationship between foreign direct investment and domestic investment is intriguing. An important question arises - does foreign direct investment crowd in or crowd out domestic investment? This paper examines this nexus in the post-1991 period in India, which is also considered as the post-reform period. It is during this era; the above-mentioned topic gains more impetus as the economy opened up for further foreign inflows. The time period taken for the paper was from 1990-91 to 2014-15. The data series were checked for stationarity and the presence of long run relationship between foreign direct investment and domestic investment was analysed using cointegration test. Thereafter, the vector error correction model was estimated. The results clearly show that foreign direct investment crowds out domestic investment in India in the post reform period. The findings have significant policy implications because there is a substituting relationship between foreign direct investment and domestic investment in India.

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外国直接投资-国内投资关系:来自印度的证据

外国直接投资和国内投资之间的关系很有趣。一个重要的问题出现了——外国直接投资是挤入还是排挤国内投资?本文考察了1991年后印度的这种联系，这一时期也被认为是改革后时期。是在这个时代;随着经济向进一步的外资流入开放，上述主题获得了更大的动力。本文选取的时间段为1990-91至2014-15。对数据序列进行平稳性检验，并利用协整检验分析外商直接投资与国内投资之间存在的长期关系。然后，对矢量误差修正模型进行估计。结果清楚地表明，在后改革时期，印度的外国直接投资挤占了国内投资。研究结果具有重要的政策意义，因为印度的外国直接投资和国内投资之间存在替代关系。

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

Contemporary Economics ECONOMICS-

CiteScore

3.70

自引率

9.50%

发文量

审稿时长

24 weeks

期刊介绍： The mission of the Contemporary Economics is to publish advanced theoretical and empirical research in economics, finance, accounting and management with the noticeable contribution and impact to the development of those disciplines and preferably with practice relevancies. All entirety of methods is desirable, including a falsification of conventional understanding, theory building through inductive or qualitative research, first empirical testing of a theory, meta-analysis with theoretical implications, constructive replication that clarifies the boundaries or range of a theory for theoretical research as well as qualitative, quantitative, field, laboratory, meta-analytic, and combination for an empirical research. This clear priority for comprehensive manuscripts containing a methodology-based theoretical and empirical research with implications and recommendations for policymaking does not exclude manuscripts entirely focused on theory or methodology. Manuscripts that raise significant, actual topics of international relevance will be highly appreciated. The interdisciplinary approach including – besides economic, financial, accounting or managerial –also other aspects, is welcomed.