Impact of FDI Inflows on India's Balance of Payments
Mohd Nayyer Rahman
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Impact of FDI Inflows on India's Balance of Payments

An Applied Econometrics Approach

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One of the most important aspects of research is identifying causality between different macroeconomic variables. The study is an attempt to build a causal relationship between two vital macroeconomic variables, that is, FDI and components of Balance of Payments for India. In order to reach a conclusion, an applied econometrics approach is used in the study as opposed to simple statistical tools. Due importance has been given to epistemological considerations. Toda and Yamamto (1995) approach to granger causality is explored and employed. The outcomes of the research give credible insights int...