International Research Journal of Accounting, Finance and Banking (IRJAFB)

INDIA'S POWER SECTOR AND FOREIGN DIRECT INVESTMENT: EXAMINING THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH

Authors

  • Dramani B Associate Professor, ICFAI Business School (IBS) Bangalore, Off-Campus Center of ICFAI Foundation for Higher Education (A Deemed to-beUniversity under Sec 3 of UGC Act 1956), India
  • Tandoh F Assistant Professor, ICFAI Business School (IBS) Hyderabad, ICFAI Foundation for Higher Education (A Deemed to-be-University under Sec 3 of UGC Act 1956), India
  • Tewari D. D Associate Professor, School of Business Management, Navi Mumbai, NMIMS Education (A Deemed to-be-University under Sec 3 of UGC Act 1956), India

Abstract

This study investigates the causal relationship between electricity consumption, foreign direct investment (FDI), and economic growth in India. Using time-series data from 1986 to 2021 and employing econometric models, this study explores the bi-directional causality between electricity consumption and FDI and the uni-directional causalities running from electricity consumption to economic growth and economic growth to FDI. The study reveals that policymakers must focus on improving the services of electricity service providers to both commercial and non-commercial participants to aid economic growth. Additionally, to attract FDI flows, policymakers must focus on maintaining high economic growth since it positively influences FDI flows in India. This study provides policy insights for policymakers interested in power sector and foreign direct investment policies in India.

Keywords:

: Electricity consumption, foreign direct investment, economic growth, India,, causal relationship

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Published

2023-04-10

Issue

Vol. 14 No. 4 (2023): April-2023

Section

Articles

How to Cite

Dramani, B., Tandoh, F., & Tewari, D. D. (2023). INDIA’S POWER SECTOR AND FOREIGN DIRECT INVESTMENT: EXAMINING THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH. International Research Journal of Accounting, Finance and Banking (IRJAFB), 14(4), 15–21. Retrieved from https://zapjournals.com/Journals/index.php/irjafb/article/view/456

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