Is Foreign Portfolio Investment Beneficial to India’s Balance of Payments? An Exploratory Analysis

  • Justine GEORGE St Paul’s College, Kalamassery, Kerala

Abstract

As oppose to the expectation, financing of Balance of Payments (BoP) with foreign investment exerted huge cost on India’s BoP. Dividend and capital gain are found to be the two cost of FPI on BoP, in which latter would considered as cost on BoP only if it is repatriated. Foreign portfolio investment (FPI) earns huge capital gain as compared to dividend and has significant evidence for repatriation.

Author Biography

Justine GEORGE, St Paul’s College, Kalamassery, Kerala
Department of Economics

References

[1] Center for Monetary Indian Economy (CMIE) Prowess Database
[2] Cerra, V., and Saxena, C.S. 2002. What Caused the 1991 Currency Crisis in India? IMF staff papers, 49(3)
[3] Chandra, N.K. 1977. Role of Foreign Capital in India. Social Scientist, 5(9): 3-20.
[4] Chandra, N.K. 1991. Growth of Foreign Capital and Its Importance in Indian Manufacturing. Economic and Political Weekly, 26(11/12): 679-690.
[5] Chandra, N.K. 2008. India’s Foreign Exchange Reserves: A Shield of Comfort or an Albatross? Economic and Political Weekly, 43(14): 40-51.
Published
2016-08-10
How to Cite
GEORGE, Justine. Is Foreign Portfolio Investment Beneficial to India’s Balance of Payments? An Exploratory Analysis. Theoretical and Practical Research in the Economic Fields, [S.l.], v. 7, n. 1, p. 5-10, aug. 2016. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/317>. Date accessed: 05 july 2022.
Section
Theoretical and Practical Research in the Economic Fields

Keywords

balance of payment, foreign portfolio, investment