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Over the years FDI activities from developing countries have grown very rapidly and most of these investments end up in other developing countries. The analysis is carried at two levels. First the authors look at the overall trends of FDI flows (both inward & outward) region wise (North versus South), country wise and sector wise. The results confirm that India's FDI activities have broadly been consistent with the well known concept of Investment Development Path (Dunning, 1981). Next they carry out econometric analysis at the sectoral /industry level for inward FDI from the North and from the South to examine the difference in the characters (if any) of FDI from the two sources.
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