Determinants of Foreign Direct Investment in SAARC Countries: An Investigation Using Panel VAR Model
Abstract
Foreign direct investment (FDI) is considered to be a policy variable to enhance economic growth in the economy. So identifying the determinants of FDI is very challenging among the policymakers. The paper examines the determinants of foreign direct investment in seven SAARC countries over the period 1980-2010. Using panel VAR model, the paper finds that foreign direct investment are largely influenced by economic growth, exchange rate, inflation, labor population, trade balance, current account balance and long term debt outstanding. The impact of economic growth and exchange rate are bidirectional, while the other factors are unidirectional on FDI inflows.Downloads
Copyright (c) 2011 Information Management and Business Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
