{'fraction_non_alphanumeric': 0.018769551616266946, 'fraction_numerical': 0.006256517205422315, 'mean_word_length': 5.153846153846154, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Nexus Between Foreign Direct Investment And Manufacturing Output In India: An ARDL Approach


 In view of the importance of foreign direct investment (FDI) on the growth of manufacturing output, this paper examines the nexus between FDI and manufacturing output in India using the autoregressive distributed lag (ARDL) bound test. The empirical results indicate that a high positive correlation presents between FDI and manufacturing output during the study period. The ARDL bound test results indicate the existence of a long-run relationship between FDI and manufacturing output in the study period. The ARDL-VECM model suggests the existence of short-run relationship between the two variables. In view of the fact that the manufacturing sector is one of the important sectors in India for employment and economic growth, there must be policy implication by the government to boost the manufacturing output in the country. JEL Classification: C22, F31, O47