Financial Risk Management Strategies Used in Corporate Sectors in India

The Kiel Institute for the World Economy Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working physical fundamental law No. 1272 scotch Reforms, Foreign Direct Investment and its economic Effects in India by Chandana Chakraborty Peter Nunnenkamp March 2006 The province for the contents of the working text file rests with the author, not the Institute. Since working papers are of preliminary nature, it may be useful to adjoin the author of a particular working paper near results or caveats before referring to, or quoting, a paper. Any comments on working papers should be sent directly to the author. Economic Reforms, Foreign Direct Investment and its Economic Effects in India Abstract: Foreign direct investment (FDI) has boomed in post-reform India. Moreover, the composition and type of FDI has changed considerably since India has opened up to world markets. This has fuelled luxuriously expectations that FDI may serve as a catalyst to higher(prenominal) economic growth. We assess the growth implications of FDI in India by subjecting industry-specific FDI and outturn data to Granger causality tests within a card cointegration framework. It turns out that the growth effects of FDI vary widely crosswise sectors. FDI stocks and output are mutually reinforcing in the manufacturing sector.

In swell contrast, any causal relationship is absent in the aboriginal sector. Most strikingly, we find lone(prenominal) transitory effects of FDI on output in the services sector, which attracted the bulk of FDI in the post-reform era. These differences in the FDI-growth relationship suggest that FDI is unlikely to work wonders in India if only remaining regulations were relaxed and still more industries opened up to FDI. Keywords: contrasted direct investment, economic reform, growth effects, India, cointegration, causality JEL classification: F21, F23, O53 same authors: Chandana Chakraborty School of Business Montclair State University Upper Montclair, NJ U. S. A. speech sound: ++01-973-655-4125 Fax:... If you want to get a full essay, run it on our website: Ordercustompaper.com

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