EFFECTS OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM PAKISTA

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Volume 10 Issue 2 2014

Author(s):

Akhtiar Ali
Wuhan University of Technology, China.
akhtiar.ali@hotmail.com

Abdur Rahman Aleemi
Institute of Business & Technology, Karachi.
abdurrahmanjan@gmail.com

Muhammad Tariq
Institute of Business & Technology, Karachi.
muhammad.tariq1985@gmail.com

Kanwal H. Lakhani
Institute of Business & Technology, Karachi.

Abstract FDI is one of the very eminent factors of the world economy. It especially plays an effective role in developing countries’ economic growth, for that reasons developing economies struggle a lot to invite FDI. The previous researches provide support that FDI has a positive impact on the growth of an economy. In this study the role of FDI along with other explanatory variables like gross capital formation, labor force participation, and public spending against the economic growth. The variables supplemented into the model are based on well-established and long-standing economic theory, tested under the standard OLS regression. The data were referred from the United Nations Conference for Trade and Development (UNCTAD) and State Bank of Pakistan FDI database. The period for this is from 1980 to 2012. All in all32years samples were taken for study in this research. The main conclusions drawn are that in the case of Pakistan, FDI and Labor force participation is found to be positively associated with economic growth. This study is going to help policymakers to take active measures and formulate strategies that will enhance economic growth in the country.
Keywords Foreign direct investment; economic growth, Pakistan
Year 2014
Volume 10
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.2014.10.02.11
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 PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/10.2/11.Effects%20of%20Foreign%20Direct%20Investment%20on%20Economic%20Growth.pdf
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