International Journal of Financial Management

1. M. Rakesh Krishnan – Assistant Prof., Dept. Of Business Admn., Rajagiri College Of Social Sciences, Kerala, India

Received
10-Nov-2013
Accepted
-
Published
10-Nov-2013
Abstract
Inflows of world FDI increased tremendously from US $200 billion in 1990 to almost US $ 916 billion in 2005. The BRIC report states that India is going to be one of the most popular destinations for FDI from across the globe. The fundamental question is whether this inflow of FDI would lead to any significant growth in the domestic economy. This study attempts to bring out the relationship between the Gross Domestic Product (GDP) and the Foreign Direct Investments (FDIs). The study concludes that in both the economies FDI are highly positively influential on the GDP, with Chinese economy showing a marginally higher correlation.
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