Dynamic Panel Data Model and FDI Determinants in India
The paper deals with different characteristics of panel data models to examine the determinants of FDI inflows in India. Using the data over 2001-2010, it finds that the main determinants of FDI inflows are the availability of power, domestic investment and profit. It further justifies that higher profitability increases FDI inflows into a state, while larger variability in it can reduce the same.