Dynamic Impacts of Exports, ODA, FDI and Remittances on Economic Growth in India: An ARDL approach

Abstract

This study examines the impact of foreign capital—specifically exports, official development assistance (ODA), foreign direct investment (FDI), remittances, and trade openness—on India’s economic growth from 1975 to 2022 using ARDL and Forecast Error Variance Decomposition. Results show that exports and ODA positively influence growth, while FDI, remittances, and trade openness have negative effects. Except for FDI, all variables are statistically significant at the 5% level. The study emphasizes the need for improved governance and policy frameworks to optimize foreign capital utilization.