Abstract
Econometrics as a separate discipline has proved itself as a dominant method for its applicability in the researches of social science mainly. It has been evident ofproviding accurate and efficient results for the researchers. Econometrics literally means economic measurement. It generally takes the help of mathematics and statistics to prove the economic theories and support the economic model to answer the questions of the researchers. The study undertaken by the researcher studies about the sectoral impact of FDI using the econometric tools like Vector Auto Regression and Granger Causality Test. The econometric techniques are usually used for the quantification of the economic relationships.
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