Domestic Capital vs. Foreign Capital New Enterprise Creation: the Case of FDI in India

• Autorzy: Tulasidharan Sajikumar , Amândio F. C. Da Silva
• Języki publikacji: EN

Abstrakty

EN

The attempt of this paper is to find an empirical relationship between Foreign Direct Investment and New Firms (Paid up Capital) and Gross Capital Formation (proxy for business growth) and Credit to Commercial Sector and Gross Capital Formation using the test of stationarity (ADF, PP, and KPSS methods), Johansen Cointegration and Granger's Causality. The results show that FDI crowds out creation of new firms and capital formation and it is the Credit flow to the commercial sector that causes Gross Capital Formation at current price. It shows domestic flow of credit is more influential in capital formation rather than foreign capital inflow. (original abstract)

Słowa kluczowe

EN

Direct investments; Foreign investment; Private sector; Credit; Foreign capital; Enterprises; Economic development

PL

Inwestycje bezpośrednie; Inwestycje zagraniczne; Sektor prywatny; Kredyt; Kapitał zagraniczny; Przedsiębiorstwo; Rozwój gospodarczy

• Czasopismo: e-Finanse
• Rocznik: 2023
• Tom: 19
• Numer: nr 4
• Strony: 9--24

Twórcy

autor

Tulasidharan Sajikumar

• Entrepreneurship Development Institute of India, India

autor

Amândio F. C. Da Silva

• ISCA, University of Aveiro, GOVCOPP, Portugal; FCHS, University Fernando Pessoa, Portugal

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Identyfikatory

DOI

10.2478/fiqf-2023-0024