Dynamic Shifts in Foreign Direct Investment in India: A Sector-specific Growth and Structural Break Analysis
Anindita Jana
USDC Global, Bangalore, India.
Susobhan Maiti
Department of Economics, JAIN (Deemed-to-be University), Bangalore, India.
Surendra Nath Mandi
*
Department of Economics, Midnapore College (Autonomus), India.
*Author to whom correspondence should be addressed.
Abstract
Foreign direct investment (FDI) has played a significant role in the development of globalization during the last three decades. The fast expansion of FDI by multinational firms during the mid-1980s can be attributed to considerable technological advancements, increased liberalisation of trade and investment regimes, and deregulation and privatisation of markets in many countries, including developing countries such as India. Considering the aforementioned background, the first objective of the paper is to analyze the growth pattern of FDI considering different sectors. Second, identify the structural break in FDI for these sectors using Sen's one-time endogenous structural break technique. Time series data for various sectors from 2008 to 2022 have been considered. Each industry exhibits high volatility, reflecting the changing economic environment and structural breaks in different years.
Keywords: Economic growth, sector-specific analysis, manufacturing, trading.