JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Competition to Catch the Capital Flight
Author(s): Ashish Kumar Sedai, Kishore Kulkarni
Citation: Ashish Kumar Sedai, Kishore Kulkarni, (2018) "Competition to Catch the Capital Flight," Journal of Applied Business and Economics, Vol. 20, Iss.4, pp. 12-32
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The study examines the nature and trends of Foreign Direct Investment (FDI hereafter) flows in India
and China since their economic reforms, especially after the sub-prime crisis 2008. A comparative
perspective is outlined to delineate the structure, conduct and performance of FDI regimes. We conduct
an empirical estimation using Granger Causality test to examine the relationship between FDI inflows
and economic growth and find that economic growth to be imperative for FDI inflow. The paper also
tries to address vital issues in the management of FDI in the new era of globalization in India and China.