Abstract

This study is a maiden attempt to determine the influence of macroeconomic indicators on foreign institutional investment inflows during the period 2009 to 2016 which is considered as post financial crisis period. For the purpose of the study, econometric tools like Normality Test, Hetroscedasticity Test, ARCH LM Test, Breusch-Godfrey Serial Correlation test, Unit Root Test Analysis, Granger Causality Test and Auto Regressive Distributed Lag Model (ARDL) have been extensively used. The results of ARDL model confirmed the strong influence of macroeconomic variables such as foreign institutional investment inflows with one lag and two lags. Nominal Effective Exchange Rate (NEER) with 3 lags, BSE_RETURN and Index of Industrial Production (IIP) on Foreign Institutional Investment Inflows (FIIs).