ABSTRACT As one of the world's most populous and economically emerging countries, India's relative position in the global economy is much influenced by a dynamic linkage between the migration of its people and an increase in foreign investment. Therefore, this study investigates the inward FDI and its network effects on Indian emigration using bilateral emigration stock data. The empirical estimation of this study employs both static and dynamic panel data econometric estimation techniques, considering India as a reporting country with 88 partner countries for the period 2000–2023. Our analysis shows that the bilateral inward FDI that India received mainly from its 88 partner countries positively stimulates its bilateral emigration towards their partner countries. Additionally, this study also confirms that the network effects of both FDI and migration on an individual basis and their mediating interaction terms on a joint basis also significantly and positively impact bilateral emigration. Furthermore, the robustness test results also confirmed similar outcomes. Therefore, a set of holistic and strategic external policies needs to be effectively executed that can cater to the dynamism of India's international factor mobility and can improve India's economic benefits and contribute to its long‐term prosperity.
Khatua et al. (Wed,) studied this question.