This website uses cookies to ensure you have the best experience. Learn more

Impact Of Fdi On Exports Essay

5867 words - 24 pages

Table of Contents


Foreign direct investment is an important part of the economy of every country.It helps expedite the globalisation process. Firms across the world interact with other firms situated in ...view middle of the document...

We aim to establish a relationship between FDI and exports and also to show that there existsa positive relationship between the two.
Following the introduction is the brief description of FDI and its growth in India, factors affecting FDI, trends and the impact of FDI on GDP. Thereafter we discuss in brief the Exports, factors influencing exports and the trends in exports. Then we come to the crux of our discussion i.e. to establish a relationship between FDI and Exports. A simple linear regression model is developed and the result interpreted. The paper ends with concluding remarks.


A number of research Papers have been written on the topic on Foreign Direct Investment (FDI) in India. In his paper on the impact of Foreign Direct Investment on India (Kamath, 2008) G Bharathi Kamath estimates and analyses the impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) and exports in India for the post-liberalization period (1991-2005). The data collected from sources such as World Investment Report (WIR) and Secretariat for Industrial Assistance (SIA)establishes the relationship between the FDI inflows and exports and GDP in the Indian economy.
The simple regression technique was used to capture the impact of FDI on exports, imports andGDP. Analysis showed that the coefficient of determination (R2) between the FDI and exports is very high and also significant. The interpretation can be that on an average, US$1 million inflow ofFDI in the economy results in around US$7.8 million exports in the economy. The variation in exports due to changes in FDI can be explained to the extent of 72%.The coefficient explaining variation in exports is significant indicating that the FDI has in fact promoted exportsduring the period of study.
A S Shiralashetti and S S Hugar (2009) analysed the trends in exports with respect to Foreign Direct Investmentand Economic Developmentof India: A Diagnostic Study.The study found that Exports from India have increased from Rs. 32,558 crore in 1990-91 to Rs. 361,879cr in 2004-05. But there has been a lack of consistency in the growth rate ofexports even though exports have shown an increasing trend.
A study on the role of FDI in export growth in India (Kishor Sharma, 2000), states that several factorsappear to have contributed to the phenomenon of rising exports including foreign direct investment (FDI)which has been rising consistently especially from the early 1990s.
The role of FDI in export promotionin developing countries remains controversial and depends crucially on the motive forsuch investment. If the motive behind FDI is to capture domestic marketit may not contribute to export growth. On the other hand, if the motiveis to tap export markets by taking advantage of the country's comparative advantage, thenFDI may contribute to export growth. Thus,whether FDI contributes to export growth ornot depends on the nature of the policy regime. Therefore, an outwardorientedregime...

Other Papers Like Impact Of Fdi On Exports

Impact Of Alfred Marshall On Economics

360 words - 2 pages Impact of Alfred Marshall on Economics Robert L. Upshur Grantham University Steve Shaw Microeconomics August 21, 2012 Alfred Marshall (July 26, 1842 – July 13, 1924), was one of the most influential economists of his time. He led the British Neoclassical School of Economics, and was responsible for the emergence of Cambridge University as a center of economic research in the early twentieth century. Through his work, applying

Impact Of Internal Audit On Risk Management

2567 words - 11 pages THE IMPACT OF INTERNAL AUDIT ROLE ON RISK MANAGEMENT IN UAE PHD proposal Presented to (Dr Puah Chin Hong) Faculty of Economics and Business University of Malaysia Sarawak Presented By Muhammad Usman Research Proposal for PHD Admission: Presented By Muhammad Usman Page 1 TABLE OF CONTENTS 1.0 2.0 INTRODUCTION BACKGROUND 2.1 2.2 2.3 2.4 3.0 4.0 A brief history of internal auditing The role of the internal auditor Role of the risk

The Impact Of Tax Revenue On Economic Growth

1418 words - 6 pages an exemption from this budget adjustment and readjustment. Countries like Nigeria who is affected by this oil price shock is seeking alternative ways to raise revenue in order to ameliorate the effects on domestic economic activities. One of the ways to generating more revenue is to strength her tax system. The purpose of this research therefore, is to examine the empirical impact of tax revenue on economic growth. 1.2 STATEMENT OF RESEARCH

Impact Of Nafta On Us, Mexico And Canada

1064 words - 5 pages 1.!Why did the US, Mexico, and Canada sign the North American Free Trade Agreement? Which sectors would you expect to gain most from this agreement? NAFTA allowed for the free flow of goods and services between the three parties, US, Mexico and Canada by immediate or phased elimination of tariffs on numerous goods. This free trade would in turn lead to comparative advantage i.e. each country could specialize in producing goods/ services in

The Impact Of The Iom Report On Nursing

1146 words - 5 pages The Impact of the IOM Report on Nursing Lori VanDerveer-Hand Grand Canyon University October 6, 2013 The Impact of the IOM Report on Nursing Key Message #1:“Nurses should practice to the full extent of their education and training” (Institute of Medicine of the National Academies, 2010, p. 85). The impact that the IOM report has had on nursing and it’s future, as we know it has been

The Impact Of Crm Capability On Innovation And Performance Advantages

1213 words - 5 pages My presentation that I’m going to show you is about “The impact of CRM capability on innovation and performance advantages”. PRESENTATION My discussion is divided in that part: - Abstract show the motivation of this choose. not only the author’s motivation but also my motivation. - with Teory I would like to give you some key concept like the definition of Innovation and who signify for a firm to bring a new product in the market - Consequently

Impact Of Mobile Information And Communication Technology On Cybercrime

6752 words - 28 pages International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 Vol. 3 Issue 8, August - 2014 The Impact of Mobile Information and Communication Technology on Cybercrime in Nigeria Oyenike Mary Olanrewaju1, Faith Oluwatosin Adebiyi2 1,2 Department of Mathematical Sciences and Information Technology Federal University Dutsin-Ma, Katsina State, Nigeria Keywords: Cybercrime, Intelligent, Investigatory Security

The Impact Of Country Attributes On Country Images

6814 words - 28 pages THE IMPACT OF COUNTRY ATTRIBUTES ON STUDY ABROAD PROGRAM AND TOURISM DESTINATION PURCHASING DECISIONS ABSTRACT Place branding has become a very competitive arena. Despite the interest of researchers and practitioners, the segment of study abroad programs has received limited attention in the literature review. According to the 2008 Global Directions in Language Travel report, in 2008, in the language studies abroad travel market, more than

The Impact Of Information Technology On The Accountancy Profession In Nigeria

309 words - 2 pages The Impact Of InformatiOn Technology On The Accountancy prOfessiOn In Nigeria THE IMPACT OF INFORMATION TECHNOLOGY ON THE ACCOUNTING PROFESSION IN NIGERIA By: Idongesit Efiong Utah ABSTRACT This research focuses on assessing the impact of information technology on the Nigerian Accounting profession by examining four areas: Impact on the public and private sector, the challenges and reaction to the challenges posed by information

The Impact Of The Iom Report 2010 On Transforming Education, Practice And Leadership

1029 words - 5 pages THE FUTURE OF NURSING: LEADING CHANGE, ADVANCING HEALTH. The Impact of The IOM Report 2010 On Transforming Education, Practice and Leadership Allan Abraham Impact on Nursing of the 2010 Institute of Medicine (IOM) on the future of nursing. There are over three million nursing professional in United States and they make the largest segment of nation’s health care workforce. Nurses can play a vital role in helping to realize the objectives

Impact Of Participative Management On Employee Satisfaction, Employee Commitment, And Turnover

5356 words - 22 pages The Impact of Participative Management on Employee Satisfaction, Employee Commitment, and Turnover Abstract The aim of this study is to investigate the effect of participative management on employee satisfaction, employee commitment, and turnover. The analytical data are based on the survey of 31 private sector employees. Pearson correlation coefficient results show that both employee satisfaction and employee commitment are effected by

Related Essays

Effect Of Fdi On Indian Insurance Sector

2763 words - 12 pages Culture represents the beliefs, ideologies, policies, practices of an organization. It gives the employees a sense of direction and also controls the way they behave with each other. The work culture brings all the employees on a common platform and unites them at the workplace. There are several factors which affect the organization culture: * The first and the foremost factor affecting culture is the individual working with the

Impact Of Divorce On Children Essay

1198 words - 5 pages “What is the impact of parental separation in young children and how can parents support their children throughout and after separation?” Separation can be a very daunting experience in young children’s lives and can impact severely on their growing skills; such as communication and social skills. Children can become vulnerable. Children need the continuing affection and support of both parents. “Not all parents are able to continue a

Impact Of Divorce On Chridren Essay

1750 words - 7 pages What is the Impact of divorce on children and adolescents? RUCHISMITA Initial Reactions of Children to Divorce 1. Divorce is an intensely stressful experience for all children, regardless of age or developmental level; many children are inadequately prepared for the impending divorce by their parents. A study in 1980 found that less than 10% of children had support from adults other than relatives during the acute phase of the divorce. 2

Impact Of Technology On Education Essay

1522 words - 7 pages wanted to spend same amount of time with the on ground classes as with their online classes, exchanging ideas and class discussions are replaced with writing papers and reading assignments. Computers and the Internet are the biggest discovery in education technology. The Internet as a computer based educational technology also has a tremendous impact. How information and projects are transmitted back and forth between teachers and students and