Impact of fdi on gdp: a comparative study of china and india dr gaurav agrawal assistant professor, abv-indian institute of information technology and management, india. Foreign direct investment (fdi) has been viewed as a power affecting economic growth (eg) directly and indirectly during the past few decades. Fdi differs from north-south fdi in relation to india the analysis is divided into two parts the first part deals with overall fdi trend, while the second part entails to the sectoral analysis.
Further of this study clearly explains the various aspects that are considered by the india and china for increasing the fdi inflows in the global market and also illustrates the policies that are followed by china as most of the investors prefer china when compare to the india. In this study, we apply fdi to the growth function based on the assumption that fdi can stimulate economic growth through the technology transfer and spillover effect (wei and liu, 2006 bende-nabende et al, 2001. Foreign direct investment (f di) acquired an important role in the international economy after the second world war theoretical studies on fdi have led to a better understanding of the economic mechanism and.
The study incorporates in it some practicable suggestions which can be gainfully considered by the government of india to match china's magic and move ahead with its development planks in right earnest. A roadmap for india's progress towards greater fdi flows whereby it can compete with china and get a competitive edge: india is lagging far behind the other developing countries with respect to fdi. Comparative study of fdi in retail in india page 3 of 19 foreign direct investment in retail sector in india until 2008, india‟s policies regarding fdi were rigid and limited fdi in multi brand retail trading (mbrt) was entirely prohibited. Analysis of inflows of foreign direct investment in india- problems 679 thus, as shown in the fig above, india is behind china, brazil and russia in attracting fdi inflows.
On the eve of prime minister narendra modi's visit to the us, here's a chart that shows the foreign direct investment stock in india and china, as a percentage of their gross domestic product. The research is to find out the flow, patterns and directions of fdi and its impact on economic growth in india and china it is to examine which country is in better position for attracting more fdi and enhancing their. Foreign direct investment flows and sustained growth: a case study of india and china, paper for degit conference in mexico- city, mimeo sources: data analysis jarque-bera residual normality test has been applied. India's share in the fdi inflows to the developing india's share in the fdi inflows to the developing world has been steadily increasing from 092 percent in 2000 to 248 percent in 2003 india and fdi - an overview: the economic policymakers in most countries go out of their way to attract.
1to study position of brics fdi inflows in world fdi 2to study fdi trends in bric countries 3to assess india‟s competitive position among bric countries in attracting fdi. comparitive study of india and china on fdi over the last few decades, china and india have made substantial improvements in the structural transformation of their economies by allowing foreign firms to compete in markets from which they were previously barred. 127 a comparative analysis of fdi in india and china mr r himachalapathy abstract this study examines the status of inward foreign direct investment flow into india. The economic development of china and india has been investigated largely according to very different time periods and comparative perspectives 7 the long-run 4 in effect the crisis only implied a slight deceleration in the two countries.
The combination of preferential government policies, foreign direct investment, great infrastructure, and human capital has contributed to the success in chinese electronics and automotive component manufacturing. Present paper attempts to investigate the effect of fdi on economic growth of china and india to take care of the issue of structural change in economy, time period of the study is taken to be. Study of country wise flow of foreign inflow in india till 2010 singh (2009) stated in their study that foreign direct investment (fdi) policies play a major role in the economic. Non-fdi flows with unison with other fdi, flows harnessing the combinations to promote maximum results for a country is a huge consideration for government alike.
Again, the main factor responsible for the fdi flow is the change of trade related policy of these two countries through relative openness of the economy social science review [the dhaka university studies, part-d], vol 30, no 2, december 2013. Relatively liberalized period from 1980 to 2012, the comparative study has used multivariate model based on cobb-douglas production function by incorporating variables like gdp per capita, exports, imports, gross capital formation and labour. The role of india and china is expanding in the global economy a whole new array of economic and financial issues are emerging which need to be tackled if t. This report undertakes a comparative analysis of the foreign direct investment (fdi) flowing from the multinational corporations (mncs) into china and india examining the prevailing investment climate to account for the differences in fdi between the two countries and finally suggest someshow more content.
Overview of foreign direct investment in pre and post economic reform in india the foreign direct investment drives the economic growth of a country foreign direct nvestment plays a major role in the advancement of technology, generating employment opportunities and promoting overall development of the economy. A comparative study of fdi policies of india, china and pakistan student academic project, professional programme-module iii the seventh-largest country, the most populous democracy and the second most populous country, india is the fastest growing nation of the world in today's time with a growth rate of 7. Foreign direct investment (fdi) and foreign technology cases (ftc's) approved in india (august 1991 to march 2012) outflow of funds from india (2004-2005 to 2006-2007 and 2009-2010 to 2011-2012) quantum of money invested by foreign institutional investors (fiis) through participatory notes in india (april 2011 to february 2012.