FDI Outflows and Domestic Investment

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FDI Outflows and Domestic Investment

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dc.contributor.author Dasgupta, Nandita
dc.date.accessioned 2016-04-29T07:25:44Z
dc.date.available 2016-04-29T07:25:44Z
dc.date.issued 2016-04-29
dc.identifier.uri http://hdl.handle.net/10398/9294
dc.description.abstract The recent phenomenon of rising outward foreign direct investment (OFDI) flows has raised serious policy concerns about its effects on the domestic investment and capital formation in the countries of origin of such FDI flows. Does OFDI stimulate domestic investment or does it crowd it out? The concern arises because OFDI activities could shift not only some of the production activities from home to foreign destinations but also could possibly threaten the availability of scarce financial resources at home by allocating resources abroad. All this have the potential to reduce domestic investment, thus lowering the long run sustainable economic growth and employment of the home economies. The central goal of this paper is to empirically explore the evidence of the macroeconomic relationship between OFDI and levels of domestic capital formation in India. Our study reveals that OFDI has long run strong positive causality with domestic investment and thus figures out to be a significant factor affecting domestic investment in India. It becomes imperative therefore that the nation make special effort to promote its OFDI through the designing of appropriate OFDI policies that would help stimulate its domestic investment now and in the future so as to sustain economic growth and development in the long run. en_US
dc.format.extent 50 en_US
dc.language eng en_US
dc.relation.ispartofseries Copenhagen Discussion Papers;59
dc.subject.other Domestic Investment en_US
dc.subject.other Structural Break en_US
dc.subject.other FDI Outflows en_US
dc.subject.other CMR Unit Root Test en_US
dc.subject.other ARDL Bounds Test en_US
dc.title FDI Outflows and Domestic Investment en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Asia Research Centre en_US
dc.contributor.departmentshort ARC en_US
dc.contributor.departmentuk Asia Research Centre en_US
dc.contributor.departmentukshort ARC en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2016 en_US
dc.title.subtitle Substitutes or Complements? Exploring the Indian Experience Nandita en_US


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