International Journal of Social Science & Economic Research
Submit Paper

Title:
DETERMINANTS OF FDI IN SERVICE SECTOR OF INDIA: AN EMPIRICAL ANALYSIS

Authors:
YOGITA VARSHNEY

|| ||

YOGITA VARSHNEY
RESEARCH SCHOLAR, DEPARTMENT OF ECONOMICS ALIGARH MUSLIM UNIVERSITY, ALIGARH, UTTAR PRADESH, INDIA.

MLA 8
VARSHNEY, YOGITA. "DETERMINANTS OF FDI IN SERVICE SECTOR OF INDIA: AN EMPIRICAL ANALYSIS." Int. j. of Social Science and Economic Research, vol. 3, no. 5, May 2018, pp. 1963-1975, ijsser.org/more2018.php?id=135. Accessed 2018.
APA
VARSHNEY, Y. (2018, May). DETERMINANTS OF FDI IN SERVICE SECTOR OF INDIA: AN EMPIRICAL ANALYSIS. Int. j. of Social Science and Economic Research, 3(5), 1963-1975. Retrieved from ijsser.org/more2018.php?id=135
Chicago
VARSHNEY, YOGITA. "DETERMINANTS OF FDI IN SERVICE SECTOR OF INDIA: AN EMPIRICAL ANALYSIS." Int. j. of Social Science and Economic Research 3, no. 5 (May 2018), 1963-1975. Accessed , 2018. ijsser.org/more2018.php?id=135.

References
[1]. Amirahmandi, Hooshang and Wu, W. (1994). Foreign Direct Investment in Developing Countries. The Journal of Developing Areas, 28(2), 167-190.
[2]. Awan, M. Z., Uz Zaman, K., & Khan, B. (2010). Determinants of foreign direct investment in services sector of Pakistan: An econometric approach. Global Financial Crisis: Causes, Emerging Trends and Strategy, 5(2), 167.
[3]. Banga, R. (2005). Critical Issues in India 's Service-Led Growth. Indian Council for Research on International Economic Relations, (Working Paper No.171).
[4]. Blonigen, B. A. (2005). A review of the empirical literature on FDI determinants. Atlantic Economic Journal, 33(4), 383-403.
[5]. Chopra, C. (2003). Foreign investment in India: Liberalization and WTO-The emerging scenario. Deep & Deep Publications.
[6]. Faeth, I. (2009). Determinants of foreign direct investment-a tale of nine theoretical models. Journal of Economic Surveys, 23(1), pp.165-196.
[7]. Froot, K.A. and Stein, J.C. (1991). Exchange rates and foreign direct investment: an imperfect capital markets approach. The Quarterly Journal of Economics, 106(4), pp.1191- 1217.
[8]. Gujarati, D.N. (2009). Basic econometrics. Tata McGraw-Hill Education.
[9]. Kaur, M. and Sharma, R. (2013). Determinants of foreign direct investment in India: an empirical analysis. Decision, 40(1-2), pp.57-67.
[10]. Kolstad, I. and Villanger, E. (2008). Determinants of foreign direct investment in services. European Journal of Political Economy, 24(2), pp.518-533.
[11]. Mukherjee, A. and Goyal, T.M. (2013). FDI in Services and India. Foreign Trade Review, 48(3), pp.413-430.
[12]. Ramasamy, B. and Yeung, M. (2010). The determinants of foreign direct investment in services. The World Economy, 33(4), pp.573-596.
[13]. Reserve Bank of India (RBI), 2016. Handbook of Statistics on the Indian Economy. Retrieved from: https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0HANDB_F0651BA902A5244DFB75DA 46261B53726.PDF
[14]. Riedl, A. (2010). Location factors of FDI and the growing services economy. Economics of Transition, 18(4), pp.741-761.
[15]. Secretariant for Industrial Assistance (SIA) Newsletters, Department of Industrial Policy and Promotion, Ministry of Commerce and Indusry, Government of India, various issues. Retrived from: http://dipp.nic.in/publications/sia-newsletter
[16]. Tripathi, V., Seth, R. and Bhandari, V. (2015). Foreign direct investment and macroeconomic factors: evidence from the Indian economy. Asia-Pacific Journal of Management Research and Innovation, 11(1), pp.46-56.
[17]. World Bank Database, 2018. World Development Indicators. Retrieved from: https://datacatalog.worldbank.org/
[18]. World investment report, 2015. "Reforming international investment governance". UNCTAD, New York and Geneva, United Nations.
[19]. Yin, F., Ye, M. and Xu, L. (2014). Location Determinants of Foreign Direct Investment in Services Evidence from Chinese Provincial-Level Data. LSE Asia Research Centre Working Papers.

Abstract:
This paper explores the determinants of foreign direct investment (FDI) in service sector of India by applying multiple regression. The study is based on secondary data covering the period from 1996 to 2016. Researcher has selected six macro-economic variables from the existing literature for analysis. The study has used foreign direct investment in service sector as dependent variable and exchange rate, inflation, openness(SFDI/SGDP), manufacturing FDI, external debt and gross domestic product growth (GDPGR) as explanatory variables. The result of empirical analysis reveals that manufacturing FDI, GDPGR and openness are the significant determinants of FDI in service sector while external debt, exchange rate and inflation are insignificant. The findings of this study suggest that efforts should be made by government for attracting higher inflow to manufacturing sector. In addition to that, policymakers should focus on designing stable and transparent policiesto gain the confidence of foreign investorsin Indian economy.

IJSSER is Member of