Do fdi and public investment crowd in or crowd out private domestic investment in India

This paper examines the dynamic relationship between Private Domestic Investment (PDI), Foreign Direct Investment (FDI) and Public Investment (PU) in India for the period 1978-79 to 2009-10. Zivot and Andrews test has been used to know the structural break points in the data series. The empirical results derived from structural VAR model indicate that FDI has crowding in effects on PDI, whereas, PU neither Ôcrowd outÕ nor Ôcrowd inÕ PDI. Further, we found the evidence that shocks in PU and PDI have positively improved the FDI inflows in India.

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Year of publication:	2014
Authors:	Rath, Badri Narayan ; Bal, Debi Prasad
Published in:	Journal of Developing Areas. - College of Business. - Vol. 48.2014, 3, p. 269-284
Publisher:	College of Business
Subject:	Investment \| Crowding Out \| Crowding in \| Structural VAR \| Zivot and Andrews Unit Root \| India

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Type of publication:	Article
Classification:	C32 - Time-Series Models ; E22 - Capital; Investment (including Inventories); Capacity ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; F21 - International Investment; Long-Term Capital Movements
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011213118