Foreign Direct Investment: Governance and Infrastructure - A Study Across Indian States

Authors

  •   Pratibha Madan Assistant Professor, Department of Economics, Kirorimal College, North Campus, University of Delhi, Delhi - 110007

DOI:

https://doi.org/10.17010/aijer/2014/v3i4/55984

Keywords:

FDI

, Infrastructure, Governance, Macroeconomic Stability, Political Stability

C10

, L90, N4, O16, R12

Paper Submission Date

, March 14, 2014, Paper sent back for Revision, May 8, Paper Acceptance Date, June 10, 2014.

Abstract

This paper ascertained the pattern of FDI distribution across Indian states for the period from 1991-2013. FDI is unevenly distributed in India. The paper further located the factors that effect FDI inflows. An infrastructure and governance index was constructed, and regression analysis was done to analyze the effects of these variables on FDI inflows. Infrastructure, governance, size of the market, and market growth together explained significant variation in FDI distribution. Therefore, the governments at the Centre and State levels need to put in consistent efforts - by improving the physical and human infrastructure as well as governance in states - to attract FDI.

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Published

2014-08-01

How to Cite

Madan, P. (2014). Foreign Direct Investment: Governance and Infrastructure - A Study Across Indian States. Arthshastra Indian Journal of Economics & Research, 3(4), 17–31. https://doi.org/10.17010/aijer/2014/v3i4/55984

Issue

Volume 3, Issue 4, July-August 2014

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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