A study on retailers perception about the financial impact of foreign direct investment in retail sector in Tamilnadu

Abstract

newline quotForeign Direct Investment (FDI) can be boon to any economy, but how it can be infused into the country without disturbing and affecting the domestic players is a big question mark when it comes to reality. The main objective of this study is to understand how FDI in retail sector in the State of Tamil Nadu will affect local retail players by studying the impact of FDI on them from their perception. newlineThe study is divided into ten main factors based on Structural Equation Modeling (SEM) which are FDI in retail, Supply Chain, Storage Facility, Government Policies, Competition, Employment, Joint Ventures, Inflation, Exchange Rate, Systemized Retail and Financial impact. The factors of SEM interrelate with each other. newlineResearch design was framed based on the study which includes the population, sample size and sampling techniques. Primary Data was collected based on questionnaire framed with these SEM factors and a survey was conducted to gather opinion on this research study from 516 organized and un-organized retail sectors in Tamil Nadu. Secondary data was collected from Journals, Books and articles related to FDI in retail. newlineThe demographic factors such as location of the outlet, size of the outlet, Existence of retail outlet, number of customers and number of employees was tested with the main 10 factors to understand their significant level using One-way ANOVA. newlineFriedman test was conducted to find the most important factor of FDI in retail. Correlation analysis was used to find the inter-relationship between the 10 factors. Regression analysis was done to frame the suitable equation to find the cause and effect relationship among the dependent and independent variables. newlinequot newline