Abstract
The current study determined long term association between exchange rate and FDI inflows in India ranging from 1991 to 2015. Exchange rate was taken as an exogenous variable while FDI was considered as an endogenous variable. To examine whether there was a long term association between the two considered variables or not, Engel-Granger Approach of co-integration was used and further, cointegration vector was built. The variables were found to be integrated of order one I(1). The empirical results of co-integration revealed that there existed a co-integration between FDI Inflows and exchange rate which was further followed by error correction mechanism.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
