determinant of foreign direct investment vinod

7/31/2019 Determinant of Foreign Direct Investment VINOD

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This introduction of south Africa

that will monitor the conduct and impact offoreign This investors in Africa. Introductionaims to set out what foreign directinvestment (FDI) is and to define the two

forms in which it occurs. then will look atwhy Africa perceives FDI as important andexamine the initiatives undertaken by

African governments in attracting FDI. focuson the factors that influence/determinewhere FDI flows and why. we discusses theactual flows of FDI in terms of regions and

sectors.


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Foreign Direct Investment, or FDI, is a type ofinvestment that involves the injection

of foreign funds into an enterprise that operates in a

different country of origin from the investor.

if the Investors are granted management andvoting rights level of ownership is greater than orequal to 10% of ordinary shares. Sharesownership amounting to less that the stated

amount is termed portfolio investment and is notcategorized as FDI


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Objective of the StudyThe present study has been undertaken with a analysis

of status of FDI in India and made some policyrecommendation to boost flow of FDI to south Africa.Thus the objectives of the study can be enumerated

as follows:

a) To analyze the pattern and direction of FDI flow in southAfrica.

b) To review FDI policy of south Africa.e) To address various issue and concern relating to FDI.f) To make policy recommendation to improve the

level of FDI.


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Period of study and Data AnalysisThe reference period is restricted from 1970 to 2009. To have an

idea about the status of FDI in India trend analysis has been

conducted. For this purpose parameter

such as FDI,GDP,Export and Import. An attempt to show the changein FDI due to these factors. Gross Fixed Capital Formation, FDI as

percentage of Gross Fixed Investment and FDI per head are used to

present better picture of flow of FDI in the country


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YEAR Foreign direct investment Imports of goods and Exports of goods and

, net inflows (% of GDP) services (% of GDP) services (% of GDP)

1970 1.868499971 25.33812774 21.8043931

1971 1.315788904 26.08234246 21.88737985

1972 0.554277908 22.81702437 25.34946334

1973 0.096251278 22.76089227 25.3596761

1974 1.948346088 28.54553617 27.9812163

1975 0.508728753 30.15774164 27.69095596

1976 0.051867231 28.96135768 27.73923817

1977 -0.309389751 25.22693521 30.23846488

1978 -0.241018925 25.64694426 32.36249132

1979 -0.866241657 25.76645425 35.21019134

1980 -0.012761706 27.34895616 35.3802016

Status of FDI in south Africa


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-2

-1

0

1

2

3

4

5

6

7

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Foreign direct investment , net

inflows (% of GDP)

Foreign direct

investment , net

inflows (% of GDP)


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-2

-1

0

1

2

3

4

5

6

7

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Foreign direct investment , net

inflows (% of GDP)

Foreign direct

investment , net

inflows (% of GDP)


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0

5

10

15

20

25

30

35

40

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Exports of goods and services (% of

GDP)

Exports of goods and

services (% of GDP)


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SUMMARY

OUTPUT

Regression

Statistics

Multiple R 0.461854206R Square 0.213309308

Adjusted R

Square

0.170785486

Standard Error 1.178877361

Observations 40

ANOVA

df SS MS F Significan

ce F

Regression 2 13.942632

27

6.9713161

35

5.0162309

38

0.011813

38

Residual 37 51.420817

77

1.3897518

32

Total 39 65.363450

04

Coefficients Standard t Stat P-value Lower Upper 95% Lower Upper


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FORECASTING

fdi=INTERCEPT+B1(IMPACT)+B(EXPORT)

so, fdi=intercept+(.00329)import

now we forecast the fdi by lineal regression method2010 y=-.739+.00329*35.55 =-26.1544912011 y=-.739+.00329*36.75 =-27.0373432012 y=-.739+.00329*37.95 =-27.9201952013 y=-.739+.00329*39.15 =-28.803047


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Patten and direction of south AfricaFDI of south Africa is stated dejecting 1970 and a sudden increase at1972and again fall at 1973 to 1975 and it going decreases vary badlyat the time of 1978 Upton 1994 and again raised of south Africa.

IMPACT OF SOUTH AFRICAIS WHICH are many fluctuation is impact of south Africa some thing itis increase sometime it is decrees.

EXPACTIS 1970 IT STATED increases is 1980 this is he peak him of expectthis.


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Refrences

Nature and Source of DataThe present study is of analytical nature and makes use

of secondary data. The relevant

secondary data are collected from various publicationsof Government of India,World data bank, Ebscohost and UNCTAD etc.

determinant of foreign direct investment vinod

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