Dynamic Impacts of Exports, ODA, FDI and Remittances on Economic Growth in India: An ARDL approach

Nur Fakhzan Marwan; Mohd Faizal Azrul Azwan Che Harun; Azeni Abu Bakar; Jolin Norshyme Hashim; Ratha Krishnan Suppiah; Asmidar Alias

doi:10.21834/e-bpj.v10iSI24.6362

Authors

Nur Fakhzan Marwan Faculty of Business and Management, Univerisiti Teknologi MARA Pahang Branch, Raub Campus, Malaysia
Mohd Faizal Azrul Azwan Che Harun Faculty of Business and Management, Univerisiti Teknologi MARA Pahang Branch, Jengka Campus, Malaysia.
Azeni Abu Bakar Faculty of Business and Management, Univerisiti Teknologi MARA Pahang Branch, Raub Campus, Malaysia
Jolin Norshyme Hashim Faculty of Business and Management, Univerisiti Teknologi MARA Pahang Branch, Raub Campus, Malaysia
Ratha Krishnan Suppiah Faculty of Business and Management,Universiti Teknologi MARA Pahang Branch, Raub Campus, Malaysia
Asmidar Alias School of Civil Engineering,Universiti Teknologi MARA Pahang Branch, Jengka Campus, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v10iSI24.6362

Keywords:

Dynamic effects, Foreign Capita, Trade Openness, ARDL, Approach

Abstract

This study examines the impact of foreign capital—specifically exports, official development assistance (ODA), foreign direct investment (FDI), remittances, and trade openness—on India’s economic growth from 1975 to 2022 using ARDL and Forecast Error Variance Decomposition. Results show that exports and ODA positively influence growth, while FDI, remittances, and trade openness have negative effects. Except for FDI, all variables are statistically significant at the 5% level. The study emphasizes the need for improved governance and policy frameworks to optimize foreign capital utilization.

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