International Journal of Social Science & Economic Research
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Title:
DETERMINANTS OF FDI IN SERVICE SECTOR OF INDIA: AN EMPIRICAL ANALYSIS

Authors:
YOGITA VARSHNEY

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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
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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.