Determinants of manufactured goods exported from Pakistan (original) (raw)
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The Impact of Foreign Direct Investment (FDI) on Pakistan Exports: An Empirical Analysis
JISR management and social sciences & economics, 2008
Over the last three decades, there have been high inflows of FDI at unprecedented accelerated rates; but the growth of exports has been increasing, however, not at satisfactory level. FDI can affect, directly and indirectly, the exports of hosting country. Using the time series data from 1977 to 2005, a double log model has been used to estimate impact of FDI on exports and results show that the two years lagged FDI has statistical significant positive impact on the current exports of Pakistan. FDI in textile sector, which is backbone of exports, had been very low in this period. The same was the case with other exporting sectors. As a matter of fact, exports do have a significant place in Pakistan, so Government of Pakistan should formulate such economic policies, as relaxation on foreign exchange control, abolishment of technical fee and introduction of the suitable tax relief policy for the foreign investors that attract FDI, especially resource-oriented, in Pakistan.
Journal of Applied Economics and Business Studies (JAEBS), 2023
This study employed autoregressive distributed lag model (ARDL) approach to investigate how exports and foreign direct investment (FDI) are related in Pakistan for the period spanning from 1974 to 2019. For cointegration analysis, we used bounds test. The findings of the cointegration test indicated that the variables have a long-term cointegration relationship. According to estimated results, the relationship between the two variables is negligible over the long-run, whereas FDI has a positive influence on exports in the short-run. Moreover, the estimated error correction term is significant with the expected sign. It is concluded that FDI inflows are advantageous for improving manufacturing processes, which would eventually lead to high-quality exports and economic progress of Pakistan. Policymakers are required to make efforts to removing all hurdles in Pakistan's economic progress.
Does Inward Foreign Direct Investment Lead Export Performance in Pakistan
This study is a pioneering attempt to investigate the impact of foreign direct investment (FDI) on export performance in Pakistan by using the long annual time series data from the period 1974–2012 and by using more rigorous econometric techniques. Autoregressive distributed lag-bound testing cointegra-tion approach confirms the valid long-run relationship between considered variables. Results indicate the significant positive impact of FDI on real exports in long run as well as in short run. Results of Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test confirm the bidirectional causal relationship between FDI and export performance in Pakistan. Results of rolling window analysis suggest that the coefficient of FDI in export model remains negative from 1983 to 1987, from 2001 to 2006 and in 2011. The coefficient of FDI in export model shows a positive coefficient in remaining years. It can be seen that FDI and real export are connected in complementary way in Pakistan. The policy makers should make policies that favour foreign investors so as to attract more FDI in Pakistan. It has been observed that a stable political and economic environment is desirable to attract more FDI in Pakistan.
Sarhad Journal of Management Sciences, 2018
This paper identifies the impact of foreign direct investment (FDI), the real effective exchange rate and the total labor force on the exports of Pakistan. A double lag equation model for this investigation was developed in which FDI, exchange rate and labor force play a central role. The underlying conceptual framework of this paper reveals the positive impact of FDI and Labor force on exports of Pakistan while exchange rate shows negative impact. The distinguishing feature of this analysis is to encourage FDI and Effective Labor force which contribute to export development strategies of Pakistan. To estimate the long run and short run connection among the variables, yearly data for the period ranging from 1990-2016 have been analyzed by using Johanson Co-integration and Vector Error Correction model have been applied to determine the response of variables on each other. The result of this study shows that in the long run, FDI and Effective labor force play a vital role in the growth of Pakistan's exports while in the short run, the influence of exchange rate are very effective for the promotion of exports. It is recommended based on the study that Government should encourage FDI &TLF when developing the policy of trade.
Foreign Direct Investment Lead to Exports of Pakistan: An Econometric Evidence
Research Journal of Finance and Accounting, 2015
The objective of the study is to empirically analyze that whether foreign direct investment lead to exports of Pakistan for the period from 1972 to 2014. Econometric results are estimated using Partial Adjustment Model for long run as well short run and then some diagnostic statistics are also applied for reliability of results. Long run and short run results propose positive influence of foreign direct investment, exchange rate, trade openness, and real GDP of Pakistan while inflation is found to have inverse effect of exports of Pakistan. Further tests indicate regression model free from Autocorrelation, Heteroskedasticity, abnormality of residuals and dynamic instability problems. Keywords: Foreign Direct Investment, Real GDP, Exports, Exchange Rate, Inflation.
Does Foreign Direct Investment Lead Export Performance in Pakistan?
This study is a pioneering attempt to investigate the impact of foreign direct investment (FDI) on export performance in Pakistan by using the long annual time series data from the period 1974–2012 and by using more rigorous econometric techniques. Autoregressive distributed lag-bound testing cointegration approach confirms the valid long-run relationship between considered variables. Results indicate the significant positive impact of FDI on real exports in long run as well as in short run. Results of Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test confirm the bidirectional causal relationship between FDI and export performance in Pakistan. Results of rolling window analysis suggest that the coefficient of FDI in export model remains negative from 1983 to 1987, from 2001 to 2006 and in 2011. The coefficient of FDI in export model shows a positive coefficient in remaining years. It can be seen that FDI and real export are connected in complementary way in Pakistan. The policy makers should make policies that favour foreign investors so as to attract more FDI in Pakistan. It has been observed that a stable political and economic environment is desirable to attract more FDI in Pakistan.
Impact of Foreign Direct Investment and Exports on Economic Growth of Pakistan
Impact of Foreign Direct Investment and Exports on Economic Growth of Pakistan, 2016
In this study, by means of instance succession exploration we observed impact of foreign direct investment, exports and exchange rate on economy intensification of Pakistan. Information were collected from IMF ,World Bank range figures since 1990 to 2010. We used four variables for this purpose like GDP; it is dependent variable and independent variables similar to Foreign Direct Investment, export and Exchange Rate. By using technique ofOLS and Unit Root Test, thepositive relationship sends abroad and foreign direct investment on GDP. The study conduct aims to analyze benefit of FDI in Pakistan. The objective of FDI is to earn maximum profit and show in form of administrative skills, superior knowledge, improved an employment opportunities, add to in government returns and cause decrease unemployment of country. Remittance inflows in 2004-05 reach US$ 1524 million as maximum if compared last three year in country. This finds FDI in Pakistan more appropriate areas are energy sector, IT and telecommunication, value additional material .Management of Pakistan responsive to significance FDI and results show that is important effect of export and FDI on an economy growth of Pakistan
Determinants of Pakistan’s Exports: An Econometric Analysis
Comparative Economic Research
The research investigated the determinants of Pakistan’s exports by using time series data from 1990–2016. Certain econometric tests were also applied to check cointegration among variables. A unit root test was used to check the stationarity of selected variables. After the stationarity of the data, a vector error correction model is used to estimate the effect of regressors, like foreign direct investment, gross domestic product, employment level, and consumption expenditures on a dependent variable, i.e. exports in the short run. The result shows the positive relationships that foreign direct investment, gross domestic product and employment level have on exports, and the adverse impact of consumption expenditures on the dependent variable. The study uses Johansen’s cointegration test for the long run. The results show that all the variables are co-integrated in the long run. It is suggested that the government should encourage foreign direct investment and gross domestic product...
The Impact of Foreign Direct investment on Pakistan Economic Growth
2013
Foreign direct investment (FDI) is often seen as an important catalyst for economic growth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The core object behind this study is to explore the exports as well as compare to imports, for the development of Pakistan by Foreign Direct investment (FDI) & find out the impact of GDP growth. Particularly the main objective is the exports increases against imports & to control the deficit problem of the country. This paper focuses on the FDI-led growth hypothesis in the case of Pakistan economy. This study comprises of annual observations and its data cover period from 1976 to 2010 and evaluate a series of observations. I describe this study with three variables, depended & independed variables & to use the secondary data & put into ARDL (Auto Regressive Distributed Lag) Model are applied to exam...
Information Management and Business Review, 2017
Foreign trade was restrained by fluctuations and depreciations in currencies, nations were under financial pressure to implement protection measures in form of custom duties tariffs. These theories and thoughts have enormous impact on rules and policies of global trade throughout the world. To adopt economic liberalization and free trade zones nations all over the world are connected through number of agreements since last few centuries. In this revolutionized economic system, nations allow free trading of merchandise and services and at the same time don't have to impose tariff in form of import and exports duties. This study attempted to empirically evaluate the role of imports, exports and its determinants in foreign trade of Pakistan applied ARDL Approach for the period of 1972-2015. The study recommends that economies with significant competitiveness and comparative advantage will be greatly benefited from export promoting policies. As far as trade partners are concerned, no considerable efforts have been done to explore new markets in direction of Pakistan's foreign trade since its independence. The key trading partners of Pakistan in the beginning were the developed countries of West and still they are main trading partners of Pakistan.