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"Private Foreign Capital in India"-Macro Economics
Individual Project
(Term Paper)
Kaushik. P
Great Lakes Institute Of Management,
Srinagar Colony, Off Raj Bhavan Road,
24, South Mada Street,
Chennai - 600015, India
Problem:
Has Foreign Direct Investment (FDI) contributed to the growth of Gross Domestic Product (GDP) of India?
Null Hypothesis (Ho): There is no significant increase in growth of GDP due to FDI inflow in India.
Alternative Hypothesis (H1): There is significant increase in growth of GDP due to FDI inflow in India.
Project Précis:
Definition:
FDI: The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.
GDP: The sum total of all final goods and services produced within a country in a specified period of time.
Foreign direct investment is an important source of capital, complements domestic private investment, and is usually associated with new job opportunities, enhancement of technology and boosts economic growth in host countries. Therefore foreign direct investment flows are increasingly looked as a panacea for all the development needs of developing countries. So, there is an increasingly intense competition among countries to attract FDI inflows so much so that governments see the magnitudes of FDI received as indicators of their success.
Preliminary Literature Survey:
Recent literature has shown that some may bring valuable benefits to their host economies, others may crowd-out domestic enterp ...