Publication

Foreign Direct Investment (FDI) is treated as a main engine of economic growth and technological development which provides ample opportunities in accelerating economic development. Economic growth also leads to FDI the phenomenon of economic growth and FDI is thus complex in nature. The objective of the paper is to examine: 1) Trends and pattern of FDI 2) FDI causes economic growth 3) Economic growth causes FDI 4) Short run and long relationship between FDI and economic growth. The time period is from 1991-2009 as economic reforms started after 1991 in India. The data base is on a quarterly basis. Economic growth is quantified in terms of the Industrial productivity index, because the National income data base is not available on a quarterly basis from 1991.