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<p>This study investigates the impact of net foreign direct investment (FDI) inflows on youth unemployment in India during the period 1990–2019. The study employs GDP, inflation, and population as control variables, while net FDI inflows serve as the main independent variable. For empirical analysis, the ARDL-bounds test for co-integration, fully modified least squares (FMOLS), and canonical co-integration regression (CCR) models are applied. The findings indicate that FDI has an insignificant impact on youth unemployment in India. Based on these results, the paper suggests that policies should be designed to channel FDI into labour-absorbing sectors in order to reduce unemployment.</p>

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Do FDI inflows reduces unemployment among youth: evidence from India

  • 期刊论文

  • 发表日期：

    2025年11月24日

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  • Furqan Ali,
  • Rehan Ali,
  • Mairaj Jahan

摘要

This study investigates the impact of net foreign direct investment (FDI) inflows on youth unemployment in India during the period 1990–2019. The study employs GDP, inflation, and population as control variables, while net FDI inflows serve as the main independent variable. For empirical analysis, the ARDL-bounds test for co-integration, fully modified least squares (FMOLS), and canonical co-integration regression (CCR) models are applied. The findings indicate that FDI has an insignificant impact on youth unemployment in India. Based on these results, the paper suggests that policies should be designed to channel FDI into labour-absorbing sectors in order to reduce unemployment.