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VOL. 12, ISSUE 1 (2026)
Does industrialization influence FDI inflows in liberalized Indian economic landscape
Authors
Swagata Saha, Dr. Sarbapriya Ray
Abstract
The article is an attempt to investigate the
causal affiliation among Foreign Direct Investment (FDI), industrialization and
trade openness in India and tries to analyze and empirically estimate the
effect of industrialization and trade openness on FDI in India, using the co
integration approach for the period, 2004-2024. The empirical findings of
suggests that trade openness has noteworthy positive impact on FDI whereas
industrialization has insignificant negative impact. The cointegration test
confirmed an existence of long run equilibrium relationship among Foreign
Direct Investment (FDI), industrialization and trade openness in India as
confirmed by the Johansen cointegration test results. The Granger causality
test finally confirmed the presence of one uni-directional causality which runs
from trade openness to industrialization.
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Pages:307-312
How to cite this article:
Swagata Saha, Dr. Sarbapriya Ray "Does industrialization influence FDI inflows in liberalized Indian economic landscape". International Journal of Commerce and Management Research, Vol 12, Issue 1, 2026, Pages 307-312
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