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Organization, Government of India and Prowess, Centre for Monitoring Indian Economy Pvt. Ltd (CMIE). The choice of the period of study is due to the structural adjustment program and macroeconomic stabilization policy launched in 1991 and as a consequence India became the lucrative place for most of the international investors. In order to net out the effect of price change in the economy, all the variables used in the study except LPR, are deflated by using the GDP deflator. In order to estimate the PCONT relationship among the sector specific variables, the PCONT model is described as follows:FDIIit = i +i Xit + VitWhere,FDIIit = Foreign Direct Investment inflows to sector i at time period t.Xit = vector of right-hand side variables at time "t" for cross-section units "i" = 1 to 9;Bt = c...
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