An Empirical Analysis on FDI and ICT in India

Sinha, Madhabendra; Chaudhury, Anjan Ray; Sengupta, Partha Pratim

doi:10.1007/978-981-32-9690-9_10

Cited by 4 publications

(9 citation statements)

References 11 publications

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“…The contradiction in findings may be due to the difference in the time span considered and methodology followed in both the studies. The finding of the positive impact of ICT on economic performance is consistent with the finding of the study made by Veeramacheneni et al (2008) and Sinha et al (2020). Moreover, the empirical evidence confirms the theoretical prediction.…”

Section: Sl Nosupporting

confidence: 91%

“…Zeng and Zhou (2021) have found a significant and positive impact of FDI on China's economic growth. In the Indian context, empirical studies conducted by Veeramacheneni et al (2008), Saiyed (2012), Sethi (2013), Saji (2013), Barua (2013), Sangwan (2015) and Sinha et al (2020) find a positive effect of FDI inflow on economic growth.…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Starting from the first study on the impact of telecommunication on growth (Hardy, 1980), several studies have analysed the growth impact of ICT (e.g. Stiroh, 2002;Van Ark and Inklaar, 2005;Atrostic and Nguyen, 2005;Morawczynski and Ngwenyama, 2007;Sridhar and Sridhar, 2007;Jalava and Pohjola, 2008;Kamel et al, 2009;Nasab and Aghaei, 2009;Vu, 2011;Kumar and Kumar, 2012;Kumar et al, 2015;Erumban and Das, 2016;Castelnovo et al, 2018;Pieri et al, 2018;Gupta and Kumar, 2018;Oyerinde and Bankole, 2019;Sinha et al, 2020;Appiah-Otoo and Song, 2021).…”

Section: Ict and Economic Performancementioning

confidence: 99%

“…The study made by Erumban and Das (2016) concludes that ICT's role in driving India's aggregate economic growth has increased. The study made by Sinha et al (2020) states that ICT significantly influences India's GDP. Similarly, the study made by Appiah-Otoo and Song (2021) finds that ICT enhances economic growth in both rich (high-income) and poor (low and middle income) countries.…”

Section: Review Of the Literaturementioning

confidence: 99%

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FDI inflow, ICT and economic performance of India: an empirical investigation

Nayak

Sahoo

2021

IJOEM

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PurposeThe aim of this study is to examine the impact of foreign direct investment (FDI) inflow and information and communication technology (ICT) on the economic performance of India by analysing annual data from 1991 to 2019.Design/methodology/approachThis study has used data collected from secondary sources. The variables considered for the analysis are based on the review of theoretical and empirical literature. Moreover, apart from the quantitative variables, two qualitative variables have also been considered through the use of dummy variables. The Cobb–Douglas, Transcendental logarithmic and Simultaneous equations models have been used for the study.FindingsThe result reveals that the partial elasticities of the per-capita gross domestic product (PCGDP) of India with respect to FDI, mobile density (MD) and internet density (ID) are 0.074, 0.024 and 0.036, respectively. The positive and significant coefficient of the interaction among FDI, MD and ID in the estimation of the transcendental logarithmic function indicates the importance of ICT infrastructure in extracting the best out of FDI (the coefficient is 0.011 for the model without any control variables and it is 0.005 with control variables).Originality/valueThe findings of this study are more reliable as the latest available data have been analysed through the appropriate econometric models. This study will be useful for the policymakers in the formulation of policies with regard to foreign capital and digitalisation.

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Section: Sl Nosupporting

confidence: 91%

Section: Review Of the Literaturementioning

confidence: 99%

Section: Ict and Economic Performancementioning

confidence: 99%

Section: Review Of the Literaturementioning

confidence: 99%

See 2 more Smart Citations

FDI inflow, ICT and economic performance of India: an empirical investigation

Nayak

Sahoo

2021

IJOEM

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“…The estimation results show that the income coefficients are −0.037 and −0.035 in FGLS and PCSE models, respectively, which indicate the presence of conditional β-convergence. It has been anticipated in the literature that FDI inflow positively impacts economic growth (Sinha et al , 2020). The confirmation of this has been found in the results shown in Table 7.…”

Section: Resultsmentioning

confidence: 99%

Regional economic growth in India: convergence or divergence?

Nayak

Sahoo

2021

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Purpose This paper aims to examine the convergence in per-capita income (measured as per-capita net state domestic product) of regions in India during the period 1990–1991 to 2017–2018. Two separate analyses have also been done for the sub-periods, i.e., 1990–1991 to 2003–2004 and 2004–2005 to 2017–2018, to find out the effect of the second phase of economic liberalization in India. Design/methodology/approach In a panel data study, the estimation of absolute and conditional beta (β)-convergence and sigma (σ)-convergence across 17 Indian regions have been done. To measure the dispersion of per-capita income across the regions in India, the standard deviation of logs, Gini coefficient, Mehran measure, Piesch measure, Kakwani measure and Theil index have been estimated. In addition to this, these indices have been regressed over time. Findings This study finds the presence of absolute and conditional β-convergence; the regions with low initial per-capita income have grown faster than the regions with high initial per-capita income. Further, this study finds that foreign direct investment (FDI) inflow and the availability of power enhance growth across regions. However, this study finds the presence of σ-divergence, which indicates that the economic inequality among the regions in India has widened over the periods, calling for policy interventions to promote growth in the backward regions through the promotion of FDI inflow and the availability of power. Originality/value This study highlights the rising economic inequality among the regions in India by analyzing the latest available data through appropriate econometric techniques.

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