Description of variables and data sources
| Name of variable | Definition | Source of data |
|---|---|---|
| Foreign direct investment (FDI) inflows | FDI refers to the net inflows of investment as the sum of equity capital and investment of earnings | DPIIT |
| Market size (MS) | Market size, measured by GDP directly influences the return on investment. It the market value of final goods and services produced in a country in a given period | RBI |
| Inflation rate (IR) | Inflation, as proxied by the consumer price index (CPI), is the annual change in percentage for the consumer's cost bearing for purchasing a similar basket of goods and services | RBI |
| Trade openness (OPEN) | Trade openness is treated as, ratio of total of exports and imports as a percentage of country’s annual GDP | RBI |
| Infrastructure (INF) | Being the cheapest source of transportation, infrastructure has been proxied by freight carried by railways in million-ton km annually. Along with the transport infrastructure, tele-density has also been taken as an important proxy to infrastructure | World Bank |
| Domestic investment (INV) | Investment, proxied by gross fixed capital formation is the aggregate of gross additions to fixed assets (that is fixed capital formation) and change in stocks in the same financial year | RBI |
| Name of variable | Definition | Source of data |
|---|---|---|
| Foreign direct investment (FDI) inflows | FDI refers to the net inflows of investment as the sum of equity capital and investment of earnings | DPIIT |
| Market size (MS) | Market size, measured by GDP directly influences the return on investment. It the market value of final goods and services produced in a country in a given period | RBI |
| Inflation rate (IR) | Inflation, as proxied by the consumer price index (CPI), is the annual change in percentage for the consumer's cost bearing for purchasing a similar basket of goods and services | RBI |
| Trade openness (OPEN) | Trade openness is treated as, ratio of total of exports and imports as a percentage of country’s annual GDP | RBI |
| Infrastructure (INF) | Being the cheapest source of transportation, infrastructure has been proxied by freight carried by railways in million-ton km annually. Along with the transport infrastructure, tele-density has also been taken as an important proxy to infrastructure | World Bank |
| Domestic investment (INV) | Investment, proxied by gross fixed capital formation is the aggregate of gross additions to fixed assets (that is fixed capital formation) and change in stocks in the same financial year | RBI |