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Abstract

The aim of our study is to empirically investigate into the causal links between the variables of interest namely FDI, GDP, Export and Import evident for India based on a data set for 40 years from 1978 to 2017. This study highlights some prominent literature on GDP and FDI causal links and essentially provides for the base of the study. The estimation of causal links is based on the ARDL Bound testing approach to test for cointegration on the selected variables which shows evidence of long run association when GDP and FDI occupy the dependent variable position.

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