01313nam a22001217a 4500008004100000100002200041245006700063260003700130300004100167520084400208650010201052773003701154230303b           ||||| |||| 00| 0 eng d  aGupta, Rajnarayan  aForeign investment and the domestic economy: The case of India  aThe Indian Journal of Economics   a101(403 pt. 4), Apr, 2021: p.603-615  aInternational capital flows have been increasing in the world since the initiation of globalisation. Capital flows into a country mainly in two channels. Typically, they are called -Foreign Direct Investment (FDI)- and -Foreign Portfolio Investment (FPI)-. Both have important impact on the host economy. The present study investigates into the role of foreign investment in the Indian economy and also the capacity of the host economy to attract those foreign funds. Vector Autoregressive Model (VAR) and Granger Causality Test have been applied for that purpose. The empirical findings assert the linkage between foreign investment and the domestic economy but the causality runs from the former to the latter and not the other way round. The vulnerability of the economy to international forces remains a cause for concern.- Reproduced   aForeign direct investment, Foreign institutional investment, GDP, SENSEX, VAR, Granger causality.  aThe Indian Journal of Economics