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This study examines the macroeconomic factors underlying FDI flows to India using cointegrating VAR with I(1) exogenous variables. The results indicate that conventional determinants such as a depreciating exchange rate, higher domestic returns, higher domestic output and better infrastructure are conducive to FDI flows to India. The results also indicate that macroeconomic instability has adverse effects while credit worthiness is conducive to FDI flows. A negative relation between trade openness and FDI is observed suggesting that FDI flows to India may be tariff jumping in nature. Empirical estimates also indicate that an increase in global FDI flows to other emerging economies reduces FDI flows to India indicating that India competes with other emerging economies in receiving FDI. Further, the results show that higher foreign output is conducive to FDI flows indicating procyclicality of FDI with economic performance of foreign countries. [ABSTRACT FROM AUTHOR]

We study returns to academic specialisation for Indian corporate sector workers by analysing cross-sectional data on male employees randomly selected from six large firms. Our analysis shows that going to college pays off, as it brings significant incremental returns over and above school education. However, the increase in returns is more pronounced in the specialisations of management and engineering, and less so in the specialisations of science, arts and commerce. Some of the less attractive specialisations, such as commerce and science, tend to make up by rewarding progression from Bachelors to Masters. Short-course diplomas are also rewarding. [ABSTRACT FROM PUBLISHER]