Causality Between FDI, GNI, and Exports : Empirical Evidence from India

Authors

  •   G. Yoganandan Professor of Management Studies, Periyar University, Salem - 636 011, Tamil Nadu.
  •   M. Vasan Assistant Professor of Commerce (Corresponding Author), National College (Autonomous), Tiruchirappalli - 620 001, Tamil Nadu.

DOI:

https://doi.org/10.17010/ijf/2022/v16i11/172462

Keywords:

Causality Test

, Co-Integration, Exports, FDI, GNI, Granger Approach

JEL Classification Codes

, C32, F10, F21, F23, F43

Paper Submission Date

, May 30, 2021, Paper sent back for Revision, June 22, 2022, Paper Acceptance Date, July 5, Paper Published Online, November 15, 2022

Abstract

This study examined the causal relationship between India’s FDI inflows, GNI, and exports and its trend during the pre and post-liberalized eras. We conducted this study based on the time -series data extracted from the World Bank database covering a period of 5 decades starting from 1970 – 2019. The study used time-series-based econometric analysis through EViews software. Johansen’s cointegration and Granger causality tests were applied to identify the long-run connection and causality direction. The results of the cointegration test proved the existence of a causal relationship between FDI, GNI, and exports. The Granger causality test results indicated a bi -directional relationship between FDI, GNI, and exports. The results of this study provided new insights into FDI inflows and GNI. In addition, the outcomes of this study provided vigorous theoretical and managerial implications.

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Published

2022-11-01

How to Cite

Yoganandan, G., & Vasan, M. (2022). Causality Between FDI, GNI, and Exports : Empirical Evidence from India. Indian Journal of Finance, 16(11), 25–39. https://doi.org/10.17010/ijf/2022/v16i11/172462

Issue

Volume 16, Issue 11, November 2022

Section

Articles
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