Publication

This paper examines the benefits of inflows of foreign direct investment (FDI) into the major economic sectors in India. It assesses the long-term relationship between FDI and gross output, export and labor productivity of the country's major sectors by using panel co-integration tests. The analysis is based on annual data from 1991-92 to 2004-05. The authors conclude that FDI has not wielded a positive impact on the Indian economy at the sectoral level.