INFRIndian National Finals Rodeo
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The index for INFR then is obtained as equal weight average of the three standardized indicators.
First, as indicated in Section "Conceptual Framework", there is no consensus in the literature about the direction of causality between the exchange rate, GFCF, FDI flows, and economic INFR.
This test finds "causality" or precedence in the D(LSFDI) equation at the 5% level, for GFCF, INFR, and the real effective exchange rate (p-value DLGFCF: 0.
TABLE 1 Correlation Matrix HK INFR R&D ROY FDI TR Sample in 1985 HK 1.
The coefficients of both FDI and TR are significant and positive as expected, so are those for INFR, R&D, and ROY.