ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Imran AhmadSubscribe to Imran Ahmad

What Drives India’s Outward Foreign Direct Investment?

An augmented gravity model and panel econometric methodologies are used to investigate what drives India’s outward foreign direct investment. Both economic and non-economic factors influence such flows. Due to poor institutional frameworks in both the home and host countries, India’s overseas investments concentrate on tax havens such as Singapore, Mauritius, and the Netherlands. It also substitutes non-marketable loans and guarantees for marketable equities.

Export Performance of South Asia

South Asia’s trade structure, trade potential, supply capacity, and global market access from 1991 to 2017 are examined through empirical research using trade indexes and gravity econometric estimation. The results broadly reflect a stagnant position of South Asia in the merchandised trade structure. South Asian economies have a comparative advantage in some sectors, which are common for them, and these became their competitive export domain. Depending on their relationship, rivalry may be beneficial. India has the highest export diversification, among other criteria, and must refocus on economic integration. The export potential exists while market access and supply capacity remain intact. As South Asia is a high-consumption economy, domestic issues should be handled tactfully and regional integration must be emphasised.

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