Study of impact of macroeconomic policies on fund flow in different economies

Abstract

The project presents the analysis of GDP and Direct Investment data and tries to identify if the Direct Investment in a country is influenced by GDP and related factors. The data used for analysis is the quarterly data for Direct Investment and GDP taken from IMF BOP and IIP data source available. The report highlights in the major findings of each of the country along with the data analysis done. The analysis also uses HP Filter to remove the cyclic components in GDP and Direct Investment data and based on the filtered values of Trend components regression analysis is done to find any consistent relationships across economies. It was found that the concerned relationship between GDP and Direct Investment does show some statistical significance. In some countries the Direct Investment trend depends on single quarter data while in other it is balanced by more than one quarter lagged data. However, the relationship across economies was not consistent.