The Impact of FDI and Export on Economic Growth in India: An Empirical Analysis

Mohammed Rashid, Shoaib Ansari, Amir Khan and Mohammad Amir
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Mohammed Rashid: Department of Agricultural Economics and Business Management, Aligarh Muslim University Aligarh, Uttar Pradesh, India.
Shoaib Ansari: Department of Agricultural Economics and Business Management, Aligarh Muslim University Aligarh, Uttar Pradesh, India.
Amir Khan: Department of Agricultural Economics and Business Management, Aligarh Muslim University Aligarh, Uttar Pradesh, India.
Mohammad Amir: Department of Agricultural Economics and Business Management, Aligarh Muslim University Aligarh, Uttar Pradesh, India.

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Abstract: This study examines the association between India's foreign direct investments, exports, imports, and Inflation onEconomic Growth in India. The autoregressive distributed lag (ARDL), bounds testing technique to co-integration over the long run, is used to investigate these connections. The error correction model (ECM) is also utilized to investigate the short-run dynamics. The findings support a long-term connection between FDI, exports,imports and Inflation onEconomic Growth. Furthermore, FDI inflows, exports and Inflation in India proved to have a positive and insignificant on Economic Growth. However, imports looked to have a negative and insignificant impact. Finally, the research recommends that a more favorable government policy toward FDI might make the Indian economy more dynamic.

Date: 2023-02-27
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Published in Asian Journal of Economics, Finance and Management , 2023, 5 (1), pp.83-91

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