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INDIA'S COMPETITIVE POSITION AMONGST THE
ASIAN ECONOMIES: AN EMPIRICAL STUDY ON FDI
INFLOW

 

TUSHAR RANJAN PANIGRAHI
St. Francis Institute of Management & Research, India

SUNITA MALL
MICA The School of Ideas, India
 


ABSTRACT

Foreign investment has become a vital part of economic development in the globalization era where every business tries to go global and tries to stay ahead in the competition. As the competition becomes very tough and price is almost similar or equal, it becomes to cut price further. So manufacturers and the firms from service industry looks for the cheaper source of production and services by means of cost cutting which in turns is possible by finding cheaper source of raw material, labour, good infrastructure etc. Also to supply goods and services without import duty, the foreign firm takes the help of producing them at the Host country’s territory and all these are possible through foreign investment. Foreign direct investments (FDI) are considered to be an important external source of finance to supplement domestic savings. India has improved its ranking in FDI over the past years and currently ranks among the first twenty nations in getting the highest inward FDI. This research paper attempts to predict the position of India in getting the inward FDI among the rest of the countries in Asia by 2020. Polynomial method of second degree (Quadratic Equation) of time-series analysis is used for prediction. The results show that China, Hong Kong and Singapore are continuing at first second and third position and India has got the fourth rank in achieving the inward FDI. This research paper highlights the ranks of different countries with respect to inward FDI. 

Key Words: FDI inflow, Polynomial Trend, Forecasting, FDI Rank Forecasting and Rank
Comparison.

JEL Codes: F21, F39, H11