The Study of FDI in a country is important because of the strong relationship it has with Economic growth.FDI helps to create financial stability in a country by boosting economic growth with the help of investments in different sectors. The sectors which have resources but do not the required technology are able to acquire foreign technology collaboration .Because of the foreign capital host countries receive,FDI is able to provide access to advanced technology that can improve efficiency and productivity capacity in a particular sector of the industry,hence creating better production opportunities.It helps job creation and it is able to provide foreign expertise which is an important factor in improving existing technical processes in different countries and so much more.Hence it is considered as a tool that can be used for the growth and development of a country.
The present study is exclusively based on secondary data which is collected from the
Central Statistical Organization, and other sources like magazine and Government reports on Indian and Chinese economy.Data on FDI and GDP (Gross Domestic Product) was collected for the period of 10 years from 2008 to 2017. GDP is termed as an indicator of economic growth. GDP is taken as a dependent variable (the cause) and FDI as an independent variable (the effect). I chose to base my research on quantitive data that was collected through a deductive approach.Regression method is used to analyze the data collected.The theoretical framework was done using various books based on Foreign Direct investment,Economic growth and employment. secondary data
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