Impact of Foreign Direct Investment on Economic Growth in Pakistan (original) (raw)
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Role Of Foreign Direct Investment In Economic Growth of Pakistan
2013
Foreign direct investment (FDI) is often seen as a significant factor of economic development in developing countries like Pakistan. The aim of this article is to investigate the effect of FDI on Pakistan's economic growth during 1972-2012. Besides FDI, three other variables such as trade openness, political instability and terrorist attacks are also used in this study. Least square method has been applied to check the effect of these variables on GDP of Pakistan. The results show that FDI has positive significant effect on economic growth of Pakistan.
The effect of Foreign Direct Investment on economic growth of Pakistan
2015
This study assesses the relationship between foreign direct investment and economic growth of Pakistan. The method of ordinary least square (OLS) has been used, utilizing time series data for the period 1980-2013. Our study found that, in case of Pakistan the results are significant showing that there is important relationship between economic growth and foreign direct investment. The study also give some recommendations including; making law & order situation better, provision of electricity, political stability and establishment of separate bench on the ministry of finance to attract foreign investment. Key words : Economic growth, foreign direct investment, developing country.
Impact of Foreign Direct Investment on Economic Growth: A Case Study of Pakistan
2010
Purpose-This research paper aims to analyze the impact of foreign direct investment (FDI) in Pakistan for the period 1981 to 2010. It evaluated the GDP growth performance and assessed the historical trends of the FDI and CPI in Pakistan. Methodology/Sample-The link between gross domestic product (GDP,) foreign direct investment and Inflation is measured with the help of multiple regression models. GDP in this model is used as dependent variable whereas FDI and inflation (CPI) are measured as independent variables. Findings-According to the results, the model is overall significant with the positive and significant association of GDP and FDI while a negative and significant relationship found between GDP and inflation. Practical Implications-On the basis of the empirical results acquired, Policy proposals are advised to attract FDI in Pakistan. Foreign direct investment (FDI) is an essential factor for economic growth in the developing countries. FDI allows the transfer of technology, uplift competition in the domestic input market, contributes to human capital development and Profits created by FDI contribute to corporate tax revenues in the host country.
Impact of Foreign Direct Investment on the Economic Growth of Pakistan
American Journal of Economics, 2017
The core objective of this study is to evaluate the impact of Foreign Direct Investment (FDI) on the economic development of Bangladesh. To attain the objective, this paper has conducted statistical analyses of the relationships between FDI and its impact on selected macroeconomic indicators such as Gross Domestic Product, Inflation Rate, and Balance of Trade. The study has examined time series data over a period of fifteen years, from 1999 to 2013. Multiple Regression Analyses were utilized to measure the relationship between independent (FDI) and dependent variables (macroeconomic indicators). The results obtained in this research signify a negative correlation between FDI and economic growth and may be a concern for the government of Bangladesh. The government might focus on required reforms and policy implications to make foreign investment more beneficial.
To What Extent Foreign Direct Investment (FDI) Affect in Economic Development of Pakistan
Research on Humanities and Social Sciences, 2014
Foreign direct investment has an important substance for the economic growth those countries which are still devolving, the effects of the foreign direct investment on the economic growth by a continuous process like increasing domestic investment, human capital formulation and facilitating the transfer technology to the host countries. The core purpose of this study is to investigate the role and impact of foreign direct investment on the economic growth of the Pakistan from 1975 to 2010 and these results have support to this article that FDI has positive effect on the economy growth both short and long run.
The paper empirically identifies the causal relationship between foreign direct investment (FDI), domestic investment and economic growth (GDP) in Pakistan over the period 1981 to 2008. The main findings of the paper are as follows: a) There is bidirectional causality between FDI and domestic investment, domestic investment and economic growth; unidirectional causality between FDI and economic growth in the long run. b) High degree of positive correlation found between FDI, domestic investment and economic growth; great economic growth spurs large domestic investment, and vice versa. c) Co-integration results show that there is positive long run relationship between FDI inflow, domestic investment and economic growth. From all these evidences it is clear that FDI inflow in Pakistan supplements domestic investment and stimulates economic growth. So for Pakistan careful policy should be adopted about FDI which not only attract foreign investors but also influence them to play their role in promoting domestic investment and economic growth in Pakistan.
The Relationship Between Foreign Direct Investment and Economic Growth of Pakistan
Journal of Social Sciences and Humanities
Although it is very common to argue that the foreign direct investment is beneficial for the economic development of a nation. This exploration investigates the connection amongst FDI and economic development in case of Pakistan. In this study secondary data from 1985 to 2016 is taken to examine the relationship. The investigation included GDP as explained and exports and FDI as explanatory variables. To check data either it is stationary or not the study used Augmented Dickey Fuller test in our study. After making data stationary we have used OLS method to investigate the nature of relationship between the variables. Our results show that there is direct link amongst explained and explanatory variable. The findings also show that there is significant relationship between FDI and economic growth. After analyzing the calculations we came to know that foreign direct investment is a significant element for the economic development because it has positive impact and have significant rel...
Impact of Foreign Direct Investment on Economic Growth of Pakistan
Impact of Foreign Direct Investment on Economic Growth of Pakistan, 2013
Given contrasting evidence in the literature pertaining to the impact of Foreign Direct Investment on the host country’s economy, we take the case of Pakistan and test the said association for this nation. The data used for this study has spanned over the period of 1981 till 2010. Besides FDI, four other variables including Debt, Trade, Inflation and Domestic Investment have been included in the study, to regress upon GDP of this country. The methodology to test the impact of these variables on Pakistan’s economy has been limited to the least squares method. The co-integration of the variables has been ascertained through application of Augmented Dickey Fuller Test and is found to hold in the long run. Our findings indicate that Pakistan’s economic performance is negatively affected by foreign investment while its domestic investment has benefitted its economy. Moreover, the nation’s debt, trade and inflation have found to have negative impact on its GDP.
RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND PAKISTAN'S ECONOMIC GROWTH
Global Journal of Management, Social Sciences and Humanities, 2021
The objective of this research paper is to analyze relationship between Foreign Direct Investment (FDI) and Economic growth. Time series data for the period of 1980-2017 was used. Different variables like Inflation, Gross capital formation, Foreign Direct investment, Trade, Population growth and Gross Domestic Product (GDP) are used to check the impact of FDI on economic growth of Pakistan. We used ARDL approach, Bound test and Error correction Model to determine short run and long run effects of FDI on economic growth. Our results show that there is long-run and short-run significant relationship between FDI and Economic Growth. Other variables such as the inflation and the population growth rate have significant impact on GDP in the long run whereas the gross capital formation and foregin trade have no significant impact on economic growth of Pakistan in the long-run.
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...