Abstract
The chapter explores the dynamic relationship between foreign direct investment (FDI) inflow and expansion of information and communication technology (ICT) during the recent stage of digitalization under the globalized era in India. In the developing countries like India, FDI is one of the crucial channels of technology diffusion, and ICT has also been an essential factor to promote the productive capacity in every sector, through expanding the global linking and competitiveness. In this context, FDI and ICT relationship should be given a special emphasis by researchers and policy makers due to their possible bi-directional relationships mainly in emerging economies. Sometimes ICT is identified as a significant determinant of FDI inflow; on the contrary, inflow of FDI also may develop the ICT base in developing nations. This background encourages for conducting an empirical study on India over the period of 2000–2016 using time series econometric methodologies. Findings imply a unidirectional causality between FDI and ICT, and GDP is impacted by both FDI and ICT.
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Notes
- 1.
According to neo-classical and modern theories of economic growth, FDI inflow promotes economic growth through the increase in capital stock and technological improvement.
- 2.
The instruments of ICT are internet connection, personal computers and mobile phones.
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Sinha, M., Chaudhury, A.R., Sengupta, P.P. (2020). An Empirical Analysis on FDI and ICT in India. In: Satapathy, S., Bhateja, V., Mohanty, J., Udgata, S. (eds) Smart Intelligent Computing and Applications . Smart Innovation, Systems and Technologies, vol 160. Springer, Singapore. https://doi.org/10.1007/978-981-32-9690-9_10
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