Quantitative analysis reveals mixed effects of foreign direct investment on GDP growth and sustainable development.
Key Points
Foreign direct investment positively impacts overall sustainable economic development assessment (SEDA) in India, while its environmental effect is negative.
A positive relationship exists between foreign direct investment and GDP, despite a negative growth rate observed in recent years.
Employing linear regression and var models, this analysis uncovers a three-way causality connecting FDI, SEDA, and GDP growth.
The findings may enable policymakers to better understand FDI's nuanced role in India's economic landscape.