Behavioural Pattern of FDI Inflows: Autoregressive Study

Rahul Singh, H. Chaturvedi, Faraji Kasidi

Abstract


The study investigates on the behavioral pattern of sectoral foreign direct investment (FDI) inflows in Indian economy for the period 2002-2010. Thirteen sectors of the economy as categorized by the Government of India are used for the study. Econometrics tools of analysis are applied. In particular the study uses Autoregression of Order One denoted as AR (1). The study seeks to explain behavioral pattern of FDI inflows. The study uncovered that Telecommunications and Construction sectors exhibited explosive behavior. Housing and Real Estate and Automobile sectors exhibited non-stationary behavioral pattern during the period. However, some sectors viz electrical equipment including Computer Software and Electronics; Transportation Industry; Chemicals (other than fertilizers); Drugs and Pharmaceuticals; Food processing industries; Cement and Gypsum products and Metallurgical industries have exhibited stationarity. Also the study exposes foreign investors’ biases in choosing some sectors in relation to other sectors.

Full Text: PDF DOI: 10.5539/ibr.v5n10p201

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.