USING STRUCTURAL EQUATION MODELING ON FOREIGN DIRECT INVESTMENT OF INDIAN ECONOMIC GROWTH - A CASE OF INSTITUTIONAL QUALITY APPROACH
Foreign direct investment (FDI) altogether influences the beneficiary country's financial development,
making it more stable, high-quality, and healthy, according to this empirical study based on the present stage of
economic development. Thus, every country encountering financial globalization is attempting to lay out a
serious business climate to increment worldwide speculation. Design/Methodology/Approach: the main
objective of this study is based on Institutional quality or Evidence and I selected 5 factors Institutional Metrics
like Voice and Accountability, Civil liberties, Women in parliament, Corruption perceptions, Political rights from
DPIIT website (Secondary Data) for the period 2018-2023. Static analysis methods such as the Unit Root Test,
the ARDL Approach, and SEM are being used. Originality/Value: The experts in this study used OLS (Least
Squares) regression: Foreign direct investment (FDI) streams were the focal point of the exploration. The impact
of institutional qualities on unfamiliar direct speculation streams has been explored utilizing the customary least
square methodology. Findings: Institutional metrics of government efficacy and corruption have shown a shortrun link with foreign direct investment (FDI) flows, according to the research, which used the ARDL model to find that these indicators had positive coefficient values. As far as institutional markers like law and order,
administrative quality, and voice and responsibility, the review found that political stability had a long-term
association with foreign direct investment flows (7.4578 > 4.16), placing it above the upper peasant table.
FDI, Institutional Metrics, Economy Growth, SEM Model.