scholarly journals Threshold Effects in the Capital Account Liberalization and Foreign Direct Investment Relationship

2014 ◽  
Vol 13 (09) ◽  
2021 ◽  
Vol 18 (1) ◽  
pp. 63-78
Author(s):  
Badar Alam Iqbal ◽  
Nida Rahman ◽  
Mohd Nayyer Rahman

Capital account liberalization has always been at the core of economic policymaking. China is a country which has chosen to go gradual in opening up the capital account. The present research seeks to manoeuvre aspects of capital account liberalization for the Chinese economy. An empirical investigation is run for ascertaining the particular influence capital controls has had on foreign direct investment in China which has outpaced other capital flows in the past decades. The model applied involves foreign direct investment inflows as the dependent variable while four variables are independent. The stationarity of the univariate series is checked with the use of Augmented Dicky Fuller test. The study concludes with theoretical understanding that full liberalization of the current account in China has overall benefited the economy. The outcome of the study suggests that there is no significant bearing of current account liberalization on foreign direct inflows.


2019 ◽  
Vol 8 (4) ◽  
pp. 12760-12762

India with a powerful development rate is currently triumph more acclimatized with world economy. The cross outskirts are vague in a monetary market and have made influence on the Indian economy too. India after globalization has now supported the crosswise over outskirts trade and consequently has progressed with the monetary development. Moreover, we have tried to relationship exists between a portion of the factors like current account and merchandise and ventures, Foreign Direct Investment and between Capital account inflows. The examination explores the effect of Foreign Direct Investment on India's Balance of Payment for a time of 2012-2016 quarter savvy. Optional information will be made through RBI site, Journals, Research articles and papers. The investigation utilizes Regression to organize connection between dependent and free factors. Here foreign direct investment, the current and capital account as logical factors, while the balance of payments is the needy variable. The investigation is drawn for the balance of payments and a logical end is drawn for the connection of balance of payments with the free factors.


2017 ◽  
Vol 18 (2) ◽  
pp. 135-157 ◽  
Author(s):  
Manmohan Agarwal ◽  
Pragya Atri ◽  
Srikanta Kundu

It is widely proclaimed that capital account liberalization would immensely benefit developing economies because once capital controls are lifted, developing economies create a potential for movement of capital. And, this free movement of capital could possibly increase growth thereby lifting millions out of poverty. India has been gradually liberalizing since the 1980s and throughout more capital inflows were observed compared to outflows. Also, the composition of capital flows has been changing since the 1980s–with Foreign Direct Investment (FDI) inflows rising steadily post-1991compared to portfolio and debt flows. However, since 2000, FDI outflows from India were also witnessed. In this paper we empirically test the impact of FDI flows on poverty in India for 1980–2011. To provide a correct perspective to India’s performance we also analyze the link between FDI flows and poverty for SAARC countries. For a better understanding of how FDI flows impact poverty, we analyze the outflows and inflows separately. The results show both similarities and contrasts in the behaviour of India in comparison with the other SAARC countries.


2016 ◽  
Vol 6 (1) ◽  
pp. 111 ◽  
Author(s):  
Mohd Nayyer Rahman

<p class="ber"><span lang="EN-GB">Transfer of capital from one country to another has been unrestricted in the present era of globalisation. The capital transfer may take one form or the other. One of the forms of capital transfer is Foreign Direct Investment Inflows (FDI Inflows) and it is an integral determinant of Capital for developing countries. FDI means the investment of funds by a foreign entity (particularly a Transnational or Multinational Company) by creating new equity base in host or home economy or vice versa. As FDI Inflow is a macroeconomic variable, it is represented in the balance sheet of the country known as Balance of Payments (BOP). The balance of payments of a country is a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries during a given period of time. To identify the happenings in the international payments, a record of the transactions between countries is necessary. The record of such transactions is made in the balance of payments account. The paper aims to measure the impact of FDI Inflows on Capital Account of India’s BOP. The time period for the study is 1991-1992 to 2014-15. </span></p>


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