IMPACT OF IMPORT, EXPORT AND GDP ON THE OVERSEAS DIRECT INVESTMENT FROM INDIA

Abstract

“Never depend on a single income. Make investment to create a second source‟ says Warren Buffet, Chairman and CEO of Berkshire Hathaway. An Overseas direct investment is one such platform wherein individuals and companies can invest abroad and take advantage of the benefits of such foreign investment. This paper has analysed the performance of Overseas Direct Investment from India over the last 10 years and has examined the macroeconomic determinants that influence the ODI. The ADF test, Johansen Cointegration test, VAR methodology and Granger Causality test have been employed in the study to analyse the data. The result of the study shows that export has been the major determinant in influencing the overseas direct investment from India.