Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 312

Article in Press

Does Governance Matter Foreign Direct Investment? Evidence from India

Hayat khan, Muhammad Shabir Jan and Itbar Khan

  •  Received: 09 February 2019
  •  Accepted: 16 April 2019
This paper examine the impact of governance indicators on FDI inflow in India. Multiple regression Models were applied to the data taken for the period of 1996-2012. VIF test shows no perfect multicollinearity. Empirical results proved that governance indicators have significant impact on FDI inflow in India which indicates that good governance attract foreign investors and enhance FDI inflow in India. This paper recommended that government of India should improve governance which can attract more foreign investors and can help achieve full employment, enhance growth and can raise per capita income.

Keywords: Governance Determinants, Foreign Direct Investment, Regression analysis, Pearson correlation