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Social determinants of intra-regional dispersion of FDI in India

Kayam, Saime Suna and Ecer, Sencer and Gupta, R (2011): Social determinants of intra-regional dispersion of FDI in India.

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Abstract

The foreign direct investment (FDI) strategy has imbued India’s once stagnant industrial sector with capital and job opportunity. However, as India’s GDP grows ever larger, there is a concern that the growth within the country is not evenly distributed and may in fact exacerbate current economic disparities. This paper seeks to look at potential avenues poorer states can take to attract FDI if they choose to as a method to stay competitive within the country. Our hypothesis is that measures such as power rating (as a proxy for infrastructure), literacy, and minimum wage would be highly significant related to inward FDI.

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