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A Macro-Economic Analysis of Foreign Direct Investments in India

Schou Kongstad, Andreas LU (2012) NEKH01 20121
Department of Economics
Abstract
This thesis analyzes factors inducing foreign direct investment flow into India. Analysis is done in two parts. Part one gives an introduction to the current state of foreign direct investment flow in the world. Part two scrutinizes the growth potential of the Indian automotive industry. Analysis of the automotive industry is done by in-depth PEST- and SWOT analysis. An empirical analysis if and how different macroeconomic variables influence the flow of foreign direct investments into India is also made. The findings conclude that a strong financial position, a high employment rate, long term government spendings on research and development and trade with other countries have a positive impact on foreign direct investments in India. The... (More)
This thesis analyzes factors inducing foreign direct investment flow into India. Analysis is done in two parts. Part one gives an introduction to the current state of foreign direct investment flow in the world. Part two scrutinizes the growth potential of the Indian automotive industry. Analysis of the automotive industry is done by in-depth PEST- and SWOT analysis. An empirical analysis if and how different macroeconomic variables influence the flow of foreign direct investments into India is also made. The findings conclude that a strong financial position, a high employment rate, long term government spendings on research and development and trade with other countries have a positive impact on foreign direct investments in India. The initial effect of government spendings on research and development, the exchange rate and the long term financial position was found having a negative effect on foreign direct investments. (Less)
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author
Schou Kongstad, Andreas LU
supervisor
organization
course
NEKH01 20121
year
type
M2 - Bachelor Degree
subject
keywords
Automotive, Automobile, PEST, SWOT, India, Foreign Direct Investment, Developing Economies
language
English
id
3052873
date added to LUP
2012-09-27 12:42:23
date last changed
2012-09-27 12:42:23
@misc{3052873,
  abstract     = {This thesis analyzes factors inducing foreign direct investment flow into India. Analysis is done in two parts. Part one gives an introduction to the current state of foreign direct investment flow in the world. Part two scrutinizes the growth potential of the Indian automotive industry. Analysis of the automotive industry is done by in-depth PEST- and SWOT analysis. An empirical analysis if and how different macroeconomic variables influence the flow of foreign direct investments into India is also made. The findings conclude that a strong financial position, a high employment rate, long term government spendings on research and development and trade with other countries have a positive impact on foreign direct investments in India. The initial effect of government spendings on research and development, the exchange rate and the long term financial position was found having a negative effect on foreign direct investments.},
  author       = {Schou Kongstad, Andreas},
  keyword      = {Automotive,Automobile,PEST,SWOT,India,Foreign Direct Investment,Developing Economies},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Macro-Economic Analysis of Foreign Direct Investments in India},
  year         = {2012},
}