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Foreign Direct Investment (FDI) Dynamics in India: What Do Arima Models Tell Us?

September 20, 2019
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Nyoni et al

Greener Journal of Economics and Accountancy

Vol. 7(1), pp. 01-10, 2019

ISSN: 2354-2357

Copyright ©2019, the copyright of this article is retained by the author(s)

DOI Link: https://doi.org/10.15580/GJEA.2019.1.041819072

https://gjournals.org/GJEA

 

 

Foreign Direct Investment (FDI) Dynamics in India: What Do Arima Models Tell Us?

 

Nyoni, Thabani1; Muchingami, Lovemore2;  Jambani, Lawrence3; Njanji, Robert4

 

1 University of Zimbabwe, Department of Economics (Student), Harare, Zimbabwe.

Email: nyonithabani35@ gmail. com

2 BA ISAGO University, Department of Accounting & Finance, Gaborone, Botswana.

Email: lavmuch@ gmail. com

3 BA ISAGO University, Department of Accounting & Finance, Gaborone, Botswana.

Email: Lawrence.jambani@ baisago.ac. bw

4 BA ISAGO University, Department of Accounting & Finance, Gaborone, Botswana.

Email: Robert.njanji@ baisago.ac. bw

 

ARTICLE INFO ABSTRACT
 

Article No.: 041819072

Type: Research

DOI: 10.15580/GJEA.2019.1.041819072

  

Using annual time series data on net FDI inflows in India from 1960 to 2017, the study examines net FDI inflows using the Box – Jenkins ARIMA methodology. The ADF tests reflect that India FDI net FDI inflows data is I (1). Based on the AIC, the study presents the ARIMA (1, 1, 0) model. The diagnostic tests further show that the presented parsimonious model is not only stable but also suitable for explaining net FDI dynamics in India. The results of the study indicate that, net FDI inflows in India are likely to weaken over the next 10 years. The study identifies two (2) significant policy recommendations in an effort to aid policy makers on how to promote and stimulate the much expected net FDI inflows in India.
 

Submitted: 18/04/2019

Accepted:  20/04/2019

Published: 20/09/2019
 

*Corresponding Author

Muchingami, Lovemore

E-mail: lavmuch@ gmail. com
 

Keywords: Foreign Direct Investment; Forecasting; India

 

JEL Codes:  C53, E27, F21
   
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Cite this Article: Nyoni, T; Muchingami, L; Jambani, L; Njanji, R (2019). Foreign Direct Investment (FDI) Dynamics in India: What Do Arima Models Tell Us? Greener Journal of Economics and Accountancy, 7(1): 01-10, https://doi.org/10.15580/GJEA.2019.1.041819072

Journal Name : citation_journal : Greener Journal of Economics and Accountancy

Publication Status/Date : usp_status_date : 20/09/2019

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