Foreign direct investment, governance and political stability: A case study of India

Abstract

This study was conducted to examine how foreign direct investment (FDI) affects political stability in India. To establish this relationship, an indirect approach is used, i.e. considering the impact of FDI on economic growth and educational development. This shows that economic development has an impact on the lev3-2-el of political stability of a country. GDP growth rate is considered an indicator of economic growth; The GER of higher education and the number of universities are considered as an indicator of educational development. Governance indicators are used to study political stability in India. The study takes into account the period 2014-2019. The results of the study show that FDI has a positive effect on political stability in India. In addition, India is advancing on the path of effective governance, political stability and political continuity.