Estimating Country-speciﬁ c Determinants of Foreign Direct Investment Flows in India: Evidence from VAR and the Innovation Accounting Model
Increased globalisation over the last two decades has led to an unprecedented growth in the ﬂ ow of Foreign Direct Investment (FDI). According to the World Investment Prospects Survey, 2010-12 conducted by United Nations Conference on Trade and Development (UNCTAD), India is the second most important FDI destination for transnational corporations (TNCs) in the survey period. India was also ranked as the fourth most attractive FDI destination in 2010 according to Ernst and Young’s 2010 European Attractiveness Survey. India attracted FDI equity inﬂ ows of US$ 2,014 million in December 2010. The cumulative amount of FDI equity inﬂ ows from April 2000 to December 2010 stood at US$ 186.79 billion, according to the data released by the Department of Industrial Policy and Promotion (DIPP).