IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN
Download| Volume 8 Issue 2 2012 | |
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| Author(s): |
Amna Muhammad Gudaro
Imran Umer Chhapra
Salman Ahmed Sheikh
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| Abstract | 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. 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 a dependent variable whereas FDI and inflation (CPI) are measured as independent variables. According to the results, the model is overall significant with the positive and significant association of GDP and FDI while a negative and the significant relationship found between GDP and inflation. Practical Implications based on 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 developing countries. FDI allows the transfer of technology, uplift competition in the domestic input market, contributes to human capital development and Profits. |
| Keywords | GDP, FDI, CPI |
| Year | 2012 |
| Volume | 8 |
| Issue | 2 |
| Type | Short Report |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/10.46745/ilma.jbs.2012.08.02.03 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/8.2/3.pdf | Page | 22-30 |