The paper analysis the flows of Foreign Direct Investment and common factors that drive the Foreign Direct Investment flows between India and Gulf Cooperation Council countries, in this paper for empirical analysis of flow of FDI, gravity model of international trade executed, data is collected from the secondary sources from the year 2001 to 2022. The main objective of the paper is to know that how FDI is effect by the GDP of two regions like India and GCC countries and other determinants of FDI in this paper, finding of the paper describes factors like GDP of India and GCC countries and employment, real effective exchange rate of India as a regressor in the model are very deterministic for explaining the flow of FDI between India & GCC countries, and in future it will benefits the countries for their development and growth.

Most developing countries in the world are working hard to attract more foreign direct investment. Identifying the key determinants of foreign direct investment is therefore seen as an essential task for policy makers. Compared to other parts of the world, the performance of ASEAN countries in attracting foreign direct investment is still poor. This study deals with identifying the determinants of foreign direct investment inflow in ASEAN 4 (Cambodia, Laos, Myanmar, and Vietnam) countries. This study estimates the panel data sample with pooled OLS and fixed and random effect models. The analyzed data covered for the period 2000 to 2020. The empirical results indicate that market size and natural resources are the most robust determinants for FDI inflows into Cambodia, Laos, Myanmar, and Vietnam. Furthermore, the presence of labor costs, infrastructure, and exchange rate exerts a favorable influence on the inflow of FDI to CLMV countries. On the contrary, the findings of the paper reveal that the inflation rate has a detrimental effect on inward FDI. This partly reflects the fact that most of the world’s FDI is market-seeking. This study provides a clear understanding of the scope of the research in the field of FDI determinants as the practical implication for future research.

The transformation of trade sector into an important economic sector over a long period is one of the features of economic reforms initiated in India since 1991. The economic reform measures have resulted in very high and continuous performance of sector in the country over a long period. The degree and magnitude trade openness measured as export + import/GDP remains very significant particularly since 1991. This fantastic performance of trade sector has many implications on macro economy in India. The economies of large-scale production and economic linkages owing to trade reforms have resulted in development of industrial economy, service sector, technology development, and high skilled employment and income levels. Higher trade openness over a long period obviously affected employment scenario in the country. The development of export and import have provided large employment opportunities. This is an important achievement considering the large employment market in the country. Consequently, the income levels of the people are also increased. This study has measured the co-integration between trade openness, employment and income levels using the econometric methodology. The estimations of the co-integration show that variables such as trade openness, employment and income are co-integrated and statistically significant. We have estimated Dickey Fuller test to know whether variables are stationary. Then, Johansen tests for cointegration between trade openness and employment estimated. Similarly, Johansen test for cointegration between trade openness and income estimated. The Engle-Granger test estimated. Then Vector Error Correction Model (VECM) is measured. The results of these tests show that trade openness and employment are cointegrated and statistically significant. Similarly, trade openness and income are cointegrated and statistically significant. The Vector error correction model also supports the long run and short run integration.

This study investigates the effect of oil prices, exchange rate and interest rate on the Indian stock market with the help of ARDL Bounds test approach on monthly time series data from April 2000 to March 2024.The empirical results confirmed co-integration between the selected variables and the stock market, which is indicative of a long-run relationship. Further, the oil prices as well as the exchange rate were found to be significant and positively related to the stock market in the long run whereas interest rate was found to be significant and negatively related. The coefficient of error correction term was negative and significant which confirms convergence towards the long-run equilibrium.