The study was conducted to know the interrelationship between foreign direct investment and domestic private investment. The researcher employs a vector auto-regressive model with appropriate investigation of impulse response and variance decomposition. In addition, the researcher computes descriptive analysis. The study used time series data ranging from, 1970-2012 for econometric analysis and 1992-2012 for descriptive analysis.
The result shows that foreign direct investment crowds-out domestic private investment. In addition, foreign direct investment does not have significant effect on economic growth. Secondly, Domestic private investment complements growth trajectory. However, expansion of domestic private investment does not welcome foreign direct investment.
Inhaltsverzeichnis
1. Introduction
2. History and Trend of Foreign Direct Investment
3. History and Trend of Domestic Private Investment
4. Link between Foreign Direct Investment and Domestic Investment
5. Rationale to see Nexus between Foreign Direct Investment and Domestic Private Investment
6. Empirical Literatures
6.1 Does Foreign Direct Investment Crowd-in/out Domestic Private Investment?
6.1.1 Foreign Direct Investment Crowds-out Domestic Private Investment
6.1.2 Foreign Direct Investment Crowds-in Domestic Private Investment
6.1.3 The Relationship between Foreign Direct Investment and Domestic Private Investment depends on Sectorial Distribution
7. Data and Methodology
7.1 Source and Nature of Data
8. Data Analysis and Interpretation
8.1 Descriptive Analysis
8.1.1 Foreign Direct Investment and Domestic Private Investment: Trend and Interrelationship
8.1.2 Sectorial Distribution of Foreign Direct Investment and Domestic Private Investment
8.1.3 Regional Distribution of Foreign Direct Investment and Domestic Private Investment
8.2 Econometrics Analysis
8.2.1 Stationarity Tests
8.2.2 Estimation of VAR Model
8.2.3 VAR Diagnostic Test
8.2.4 Granger Causality/Block Exogeneity Test
8.2.5 The Johansen Co-integration Test Result
8.2.6 Vector Error Correction Model (VECM)
8.2.7 Impulse response and variance decomposition
8.7.2 Variance Decomposition
9. Conclusion and policy implication
9.1 Conclusion
9.2 Policy Implications
References
