Determinants of the Sources of FDI into India

Prathyush Sarasa, Disha Singh and Sebastian Morris ()

No WP2014-11-05, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Inward FDI flows over 2000-01 from many source countries into India, one of the fastest growing large developing economies in the period, have been explained by an extended gravity model and the an extended allometric models by incorporating other variables such as common language, tax status, interest differential, and distance to arrive at the importance of these variables. Additionally, in representing the “size” in the both models by not GDP but as a constitution of per capita income and population, the difference between countries with the same GDP but at different levels of development are accounted for in the normalization itself so that the influence of the economic variables is more robustly estimated. The allometric model is found to be superior in explaining the overall variance in FDI inflows.

Date: 2014-11-26
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.iima.ac.in/sites/default/files/rnpfiles/16754336392014-11-05.pdf English Version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:13010

Access Statistics for this paper

More papers in IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department Contact information at EDIRC.
Bibliographic data for series maintained by ().