Determinants of Foreign Direct Investment: A Macro Perspective

This paper provides an extensive explanation for determinants of FDI inflows in to as well as outflows from India. It analyzes the dynamics of several FDI determinants in relation to the inflows and outflows. It reviews the key results of research regarding the determinants of FDI. The study concludes that FDI inflows in to India is simultaneously determined by the policy framework, market size, economic factors as well as economic stability and political factors. The study also infers that there are similarities and dissimilarities in determining factors that explain FDI inflows in to India and other underdeveloped countries.