Bank Foreign Direct Investment in Indian Economy: A Theoretical Review

The study's primary objective is to understand the evolution of foreign direct investment theories (FDI) and identify the application theories in bank FDI from the literature. Based on the pattern of investment, FDI can be classified as greenfield and brownfield investment. Both types of investments yield profits, so the study attempted to answer why greenfield FDI, i.e., foreign banks invest by opening their branches and offices in the host economy. The study reviewed literature focused on bank FDI determinants in host economies and discussed it in the Indian context. The study found that primary reasons for greenfield FDI are India's locational advantages, such as profit opportunity and already present home clients in India.

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.


Author(s):  
Rudresha C. E

International economic integration plays a significant role in the growth and development of any country, whether rich or poor. And foreign direct investment (FDI) is one of the major components in the process of achieving international economic integration in any economy. As is known, FDI serves as a link between investment and savings. This is true even in the case of India which is facing the deficit of savings and which can be addressed with the help of FDI. It (i.e., FDI) also helps in raising the growth and development of the economy. India is one of the leading markets at the global level. It has emerged as one of the attractive destinations in the world with a significant change in the inflow of FDI. The journey of FDI is very interesting with the introduction of liberalized policy through new economic policy 1991 and also other policy reforms of Government of India. It has witnessed a drastic change in the inflow and direction of foreign investment in Indian economy. In this backdrop, an attempt is made in this paper to examine country-wise, sector-wise and region-wise FDI inflows in Indian economy during last 19 years, 2000-01 to 2018-19. KEY WORDS: Economic Integration, Foreign Direct Investment, Developing Nations, Savings, Policy Reforms


2018 ◽  
Vol 11 (1) ◽  
pp. 165-196 ◽  
Author(s):  
Sebastian Tocar

AbstractWhen investigating foreign direct investment, scientists focus on different combinations of factors. They often emphasize the economic ones, while underestimating the others. Among the non-economic factors, there are several problems regarding the identification of relevant FDI determinants. The aim of this paper is the provision of a comprehensive review of the factors that are considered to impact the attraction of FDI and the identification of relevant FDI determinants. From the variety of factors, mentioned in the specialty literature, we identified eleven categories of FDI determinants. We also provided a comprehensive review of categorical and methodological interferences of the identified factors, proposing potential working hypothesis for future researches in the field. The final assessment of this study is the creation of a Synthesis of the factors influencing FDI.


Author(s):  
Amit Girdharwal ◽  
Amit Girdharwal

India embarked on a journey of economic reform in 1991 in order to remove the structural and institutional bottlenecks that were plaguing the Indian economy. The objectives of reforms were to achieve higher growth and efficient utilization of resources and thereby redistribution of resources. The reforms introduced in 1991 could be characterized as liberalization, privatization and globalization. Attracting FDI as an addition to existing pool of resources was one of the major objectives of reform. Since 1991, inflow of FDI in India has been rising steadily. The process that begun in 1991, has been constantly reformed in order to achieve the aspiration goals of India. The recent regime in India has reinvigorated economic reforms and thus helped in attracting historic level of FDI inflow. There seems to be a point of break around 2014 which marks that FDI inflow has peaked considerably thereafter.


2014 ◽  
Vol 16 (1) ◽  
pp. 54-61 ◽  
Author(s):  
Dr. A K Ray ◽  
◽  
Dipayan Ghosh

2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Joseli Konig Ramos ◽  
Juliano Krug ◽  
Paula Carolina Ferretti ◽  
Adriana Kroenke

Objective: This study aims to analyze the influence of natural disasters on countries' FDI.Method: We used data from 137 countries, considering the period from 2011 to 2017. The secondary data used to measure Foreign Direct Investment are from the UNCTAD - United Nations Conference on Trade and Development following the study by Alfaro et al. (2004). For data on natural disasters, the EM-DAT database - The International Disaster Database provided by CRED - Center for Research on the Epidemiology of Disasters - was used, based on the studies by Toya Skidmore (2007) and Escaleras Register (2011). The analysis was performed through Linear Regression of panel data.Originality/Relevance: This study points to a direction of research for those interested in expanding the flows of Foreign Direct Investment in their countries, being significant in the field of business, government, public policy makers and the third sector.Results: The results show that when an economy suffers from natural disasters that cause deaths and, consequently, a reduction in human capital, foreign investors can negatively portray this fact. On the other hand, the number of occurrences and the loss in millions of dollars when analyzed individually do not discourage FDI and the presence of multinationals in the affected country. The variables: total of injured, total of affected, and total of homeless have no relation with FDI in the analyzed sample. It is indicated that, in the face of a natural disaster, countries create opportunities for the replacement and reconstruction of infrastructure and human capital.Theoretical contribution: We seek to contribute theoretically to the recent increase of studies that verify the relationship between natural disasters and FDI in the light of the institution-based view. We direct greater understanding to the premise that natural disasters affect a country's economy as they cause FDI reduction, and we provide the foundation for future studies. While previous studies are concerned with FDI determinants, being tax incentives and property rights, this study focuses specifically on the different variables that aggregate natural disasters. In addition, the study aims to expand the perception of decision makers, belonging to the government, private entities and the third sector, so that they can reduce and prevent the occurrence of natural disasters, thus attracting FDI flows in their countries.


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