Management International Review

, Volume 53, Issue 6, pp 819–839 | Cite as

The Variation in Indian Inward FDI Patterns

Research Article
First Online:
Received:
Revised:
Accepted:

Abstract

  • This study examines the variation in Indian inward FDI patterns, considering the impact of economic development and geographic location on the variation from both FDI home and host country perspectives.

  • Employing a panel dataset at the aggregate country-level, the study is conducted using the generalised least squares (GLS) model.

  • The findings suggest that Indian FDI patterns vary over time in line with Indian economic and structural transformations. The patterns also differ between the home country groups in line with their economic development and geographic location relative to India. The desirable patterns of Indian inward FDI are determined not only the development levels of both host and home countries but also the host country’s factor endowment pattern.

  • It is important for the Indian government to formulate selective targeting FDI policies to maximise economic impact of inward FDI by attracting more desirable efficiency-seeking FDI for higher economic growth.

Keywords

Variation Inward FDI pattern Host and home country Economic development Geographic location India 
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Notes

Acknowledgments:

I would like to thank Jeremy Clegg, the journal editor, and the three anonymous reviewers for their comments and suggestions that greatly helped to improve the quality of the article. All errors remain my own.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Westminster Business SchoolUniversity of WestminsterLondonUK

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