Relationship Between FDI and India’s Foreign Trade: A Cointegration and VECM Approach

Author(s)	Nistha Sharma, Pankaj Bhatt
Country	India
Abstract	Foreign capital inflows have emerged as a powerful tool for transferring capital and technology from other economies, especially developed countries. Globalization has made way for international business to cross borders. Foreign Institutional Investor and Foreign Direct Investment (FDI) are two modes of foreign investment and FDI is one of the best routes to invest across the border. India has also become an attractive destination for investment due to immense growth potential. The whole world has seen the role of foreign investment in acting as a bridge to link the gap between investment and savings. It helps in maintaining transparency among different countries and promotes bilateral trade between the countries. This paper focuses on analyzing the trend of FDIs and exports along with the relationship between exports and FDI with the help of Johansen Cointegration and Vector error correction model (VECM)
Keywords	FDI, Export, Cointegration, VECM
Field	Mathematics > Economy / Commerce
Published In	Volume 5, Issue 4, July-August 2023
Published On	2023-07-09
Cite This	Relationship Between FDI and India’s Foreign Trade: A Cointegration and VECM Approach - Nistha Sharma, Pankaj Bhatt - IJFMR Volume 5, Issue 4, July-August 2023. DOI 10.36948/ijfmr.2023.v05i04.4266
DOI	https://doi.org/10.36948/ijfmr.2023.v05i04.4266
Short DOI	https://doi.org/gsgnts

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9898-5948-55	editor@ijfmr.com

International Journal For Multidisciplinary Research