1Assistant Professor, PG Department of Commerce, Guru Nanak Dev University College, Chungh, Tarn Taran, Punjab, India. manjindergndu@gmail.com
2Professor, Punjab School of Economics, Amritsar, Punjab, India
3Former Registrar, Guru Nanak Dev University, Amritsar, Punjab, India, dhillon_sharanjit@yahoo.co.in
During the post liberalisation period from 1991–92 to 2014–15 an increase in FDI inflows has been observed except for the years 1998–99 to 1999–00, 2002–03 to 2003–04, 2009–10 to 2010–11 and 2012–13. The major chunk of FDI is contributed by six countries viz., Mauritius, Singapore, UK, Japan, Netherlands and US with highest proportion of FDI inflows being in service sector. In spite of tremendous rise in FDI inflows in the post liberalisation period, the magnitude of FDI inflows in India is very low in comparison with other emerging market economies due to its weak infrastructure and stringent laws. Empirical analysis based on various pull factors for FDI inflows to India exhibited that real wages and unemployment of host country has significant and favourable impact on FDI inflows. However, external debt as an indicator of efficiency of host country has adverse impact on FDI inflows.
Liberalisation, Multicollinearity, Pull, Significant, Unemployment
