Journal articles on the topic 'FDI in Pakistan'
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1
Ahmad, Muhammad Salman, Elżbieta Izabela Szczepankiewicz, Dai Yonghong, Farid Ullah, Ihsan Ullah, and Windham Eugene Loopesco. "Does Chinese Foreign Direct Investment (FDI) Stimulate Economic Growth in Pakistan? An Application of the Autoregressive Distributed Lag (ARDL Bounds) Testing Approach." Energies 15, no. 6 (March 11, 2022): 2050. http://dx.doi.org/10.3390/en15062050.
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The objective of this paper is to ascertain the impact of Chinese FDI on economic growth in Pakistan. This study documents the exploration of the determinants of economic growth in Pakistan by emphasizing the significant role played by Chinese FDI and investments in renewable energy in particular. This paper employs time series data analysis to examine the relationship between GDP and Chinese FDI, inflation, trade openness, exchange rates, interest rates, remittances, and renewable energy consumption from 1990 to 2019. The study involved performing the ARDL bounds test, and it was determined that the dependent and independent variables are linked in the long term. Furthermore, the error correction model is negative and noteworthy, which checks the long-run relationship between variables. According to the findings of the autoregressive distributed lag (ARDL) model, Chinese FDI has a substantial favorable effect on Pakistan’s economic growth. Furthermore, renewable energy usage has a long-term favorable and significant association with Pakistan’s economic growth. This study established that FDI, and particularly renewable energy, will stimulate the economic growth of Pakistan. Our research has substantial policy implications, especially when it comes to the relationship between FDI and renewable energy.
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Afzal, Muhammad, and Shoaib Ahmad. "FDI, Trade and Economic Development in Pakistan." Quantitative Economics and Management Studies 1, no. 6 (November 25, 2020): 426–34. http://dx.doi.org/10.35877/454ri.qems222.
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This paper examined the relationship between FDI, imports, exports, terms of trade and investment in Pakistan for the period 1990-2015. Results show that an increase in all these factors will contribute significantly to FDI flows that may help the Pakistan’s economy. FDI has negative and significant impact on GDP. Exports have an insignificant effect that may imply that historically economy had led exports more than the exports led the economy. More important fact is that world economic conditions play a crucial role in the macroeconomic performance. When these conditions are favorable, not only the economy but also the trade grow. Though global financial crisis did not seriously affect Pakistan’s economy, Pakistan faced multifaceted challenges on external and internal fronts notably fight against extremism, energy crisis and uncertain external inflows. There is a need to pay more attention to domestic situation than to look abroad for financial assistance since FDI is not an unmixed blessing.
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Khan, Muhammad, Hee Young Lee, and Jung Han Bae. "Inward Foreign Direct Investment: A Case Study of Pakistan." Mediterranean Journal of Social Sciences 9, no. 5 (September 1, 2018): 63–81. http://dx.doi.org/10.2478/mjss-2018-0139.
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Abstract The purpose of this study is to identify and analyze the methods for increasing the volume of Inward Foreign Direct Investment (FDI) in Pakistan. Two different approaches are investigated: firstly, identifying the main barriers to investing in Pakistan, and secondly, examining the key success factors (KSFs) of the top FDI recipients in the world. Both parametric and non-parametric statistical analyses are applied. The study findings provide guidance to the implementation of common KSFs for increasing inward FDI. The paper discusses cultural barriers in developing markets for investors’ collective performance, the consequence and significance of cultural barriers in emerging markets, and the requirement for social adaptation for successfully attract inward FDI in developing counties. This paper identifies and proposes suggestions for resolving the internal problems of Pakistan’s investment climate that act as impediments to increased FDI volume.
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Akbar, Minhas, and Ahsan Akbar. "An Empirical Analysis of Foreign Direct Investment in Pakistan." Studies in Business and Economics 10, no. 1 (April 1, 2015): 5–15. http://dx.doi.org/10.1515/sbe-2015-0001.
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Abstract The aim of this paper is to explore the trends in Foreign Direct Investment (FDI) inflows in Pakistan and to identify the key determinants of FDI for the period of 2000-2013. The country experienced a continuous surge in FDI inflows from 2000-2008. On the contrary, the phase of 2009-2013 has been characterized by a persistent decline in FDI in Pakistan. This slump is mainly attributed to political and economic instability as wells as poor law and order situation in the country. Keeping these periods with differing results in perspective, multiple regression analysis is employed to empirically analyze the key determinants that are expected to explain variation in FDI in Pakistan. The selected variables were found significant determinants of FDI in Pakistan. Gross Domestic Product (GDP), degree of trade openness and regime of dictatorship have a significant positive effect on FDI. While, terrorism attacks foreign debt, exchange rate, political instability, and domestic capital formation are negatively significant determinants of FDI inflows in Pakistan. Considering the dynamic changes in the broad macro factors in economy, this study provides a fresh perspective on the factors that determine FDI in Pakistan. Moreover, the study findings provide important insights to policy makers to design policy measures that enhance FDI inflows in Pakistan.
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Ali, Muhammad Sibt e., Usman Ullah Khan, Dil Jan, and Sabiha Parveen. "The Relationship between Financial Development and Foreign Direct Investment and its Impact on Economic Growth of Pakistan." iRASD Journal of Economics 3, no. 1 (June 30, 2021): 27–37. http://dx.doi.org/10.52131/joe.2021.0301.0023.
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This research investigates the interaction between foreign direct investment (FDI) and financial development (FD) to promote economic growth in Pakistan for the period 1980 - 2017. Using Autoregressive distributed lag (ARDL) bound estimation techniques, the study showed that FDI, trade openness and government expenditures has a significant impact on economic development in Pakistan. More interestingly, it is evident that the interaction effect of FDI and FD has a significant positive impact on economic growth of Pakistan. This research can play an important role in policymaking to boost FDI and FD for the economic prosperity of Pakistan.
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Ahmad, Shakeel, Muhammad Tariq, Touseef Hussain, Qasir Abbas, Hamidullah Elham, Iqbal Haider, and Xiangmei Li. "Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan." Sustainability 12, no. 18 (September 11, 2020): 7485. http://dx.doi.org/10.3390/su12187485.
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Pakistan’s agricultural sector growth is dwindling from the last several years due to insufficient foreign direct investment (FDI) and a drastic climate change-induced raise in temperature, which are severely affecting agricultural production. The FDI has paramount importance for the economy of developing countries as well as the improvement of agricultural production. Based on the time series data from 1984 to 2017, this paper aims to highlight the present situation of the agriculture sector of Pakistan and empirically analyze the short-run and long-run impact of Chinese foreign direct investment (CFDI), climate change, and CO2 emissions on agricultural productivity and causality among the variables. The Autoregressive Distributed Lag Model (ARDL) model and Granger Causality test were employed to find out the long-run, short-run, and causal relationships among the variables of interest. Furthermore, we have employed the Error Correction Model (ECM) to know the convergence of the equilibrium path. The bound test results verified the existence of a long-run association, and the empirical findings confirmed that Chinese FDI has a significant and positive impact, while climate change and CO2 emissions has negative impact on the agricultural growth of Pakistan both in the short-run and long-run. Granger Causality test results revealed that variables of interest exhibit bi-directional and uni-directional causality. The sector-wise flow of FDI reveals that the agriculture sector of Pakistan has comparatively received a less amount of FDI than other sectors of the economy. Based on the findings, it was suggested to the Government of Pakistan and policymakers to induce more FDI in the agriculture sector. Such policies would be helpful for the progress of the agriculture sector as well as for the economic growth of Pakistan.
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Shafiq, Muhammad Nouman, Liu Hua, Muhammad Azhar Bhatti, and Seemab Gillani. "Impact of Taxation on Foreign Direct Investment: Empirical Evidence from Pakistan." Pakistan Journal of Humanities and Social Sciences 9, no. 1 (June 30, 2021): 10–18. http://dx.doi.org/10.52131/pjhss.2021.0901.0108.
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Foreign direct investment plays a vital role in promoting economic growth, especially for developing economies. It causes improvement in the different sectors such as education, healthcare, manufacturing industries, and creates more jobs. The speed of FDI inflows has been increasing in Pakistan each year. In order to attract more FDI, many countries try to reframe their tax policies by introducing different tax incentives such as tax holidays, investment allowances, exemptions, deductions etc. The purpose of the present paper is to find the implication of taxation in the decision of FDI inflows in Pakistan. Time series data is used spanning over 1985 to 2020. The data was obtained from two sources: the “World Development Indicator” (WDI) and “Economic Survey of Pakistan”. “Auto-Regressive Distributed Lag” (ARDL) and “Error Correction Model” (ECM) techniques are used for empirical analysis. The study concludes that low taxes motivate foreign investors' investment contribution and the long-run relationship between taxes and FDI in Pakistan. Other control variables, including GDP growth, trade openness and exchange rate, positively impact FDI. It is suggested that decision-makers should direct policies to reduce the taxes to welcome FDI in Pakistan. In this regard, the government needs to reconsider its priorities while making policies favouring FDI.
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Rehman, Naqeeb Ur. "FDI and economic growth: empirical evidence from Pakistan." Journal of Economic and Administrative Sciences 32, no. 1 (May 16, 2016): 63–76. http://dx.doi.org/10.1108/jeas-12-2014-0035.
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Purpose – The purpose of this paper is to investigate the relationship between FDI and economic growth. Two models have been used to analyse the time series data on Pakistan from 1970 to 2012. This paper contributes to the existing literature by examining the different empirical methods to estimate the relationship between FDI and economic growth. The vector error correction model (VECM) results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Design/methodology/approach – Used time series data (1970-2012) for empirical analysis. Findings – The VECM results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Research limitations/implications – The limitations of this empirical paper are as follows: it would be better to use secondary school enrolment (per cent) to measure human capital instead adult literacy rate. Similarly, the non-availability of R & D data on Pakistan limited the scope of the paper to measure the role of absorptive capacity of domestic and its relationship with FDI. The results of this paper are specifically related to Pakistan and cannot be generalized to other countries. Practical implications – This empirical study implies that Pakistan should improve its economic growth. The robust policies are required to increase the literacy rate of the country. Higher human capital will attract more FDI into the economy and may reduce the unemployment. This would increase the national output of the country and their national income level. Presently, Pakistan is going through war on terror and foreign firms are reluctant to invest. A stable and secure business environment will ultimately inject foreign direct investment into Pakistan. Originality/value – This paper is first time analyse the time series data to explore the relationship between FDI and economic growth. A new approach has been used called VECM.
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Ullah, Asad, Asfandyar Rahim, Mohammad Daud Ali, Shah Raza Khan, and Syed Arshad Ali Shah. "Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan." JISR management and social sciences & economics 18, no. 1 (June 30, 2021): 125–36. http://dx.doi.org/10.31384/jisrmsse/2020.18.1.9.
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The purpose of this study is to find out the impact of Terrorism on FDI inflow in Pakistan as well as other variables such as economic growth, market size, trade openness and infrastructure. Using a simple regression model to estimate time series, annual data from 2001 to 2016, the study concludes that market size, economic growth, and trade openness have a significant positive relationship with FDI. At the same time, the result shows that Terrorism and infrastructure has a significant negative relationship with FDI. This empirically builds up the way that Terrorism is a real threat to FDI and economic development of the economies of Pakistan. The empirical outcomes of the study of Terrorism confirmed the way that Terrorism based oppression has harmed the economic prosperity of Pakistan and has debilitated FDI inflows during the sample period. Therefore, Pakistan will take to measures the investment environment in this area. Government strategy makers should consider the situation of Terrorism, instability and lawfulness circumstance to decrease the risk of investors and to ensure their investment ability to host FDI.
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Raza, Syed Sundus, and Anwar Hussain. "The Nexus of Foreign Direct Investment, Economic Growth and Environment in Pakistan." Pakistan Development Review 55, no. 2 (June 1, 2016): 95–111. http://dx.doi.org/10.30541/v55i2pp.95-111.
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This paper estimate the impact of sectoral FDI on economic growth and carbon dioxide emissions in Pakistan. To this end, it uses time series secondary data from 1972 to 2011 and applies Auto Regressive Distributed Lag (ARDL) models. The results showed that FDI inflows in manufacturing, transport, storage and communication sectors and energy consumption have positive effect on the GDP growth of Pakistan. Besides, FDI inflow in manufacturing, transport, storage and communication sector and population density are responsible for the CO2 emissions in Pakistan. The results also validate Environmental Kuznet Curves in both long and short run. JEL Classification: E2, O4, Q5 Keywords: Sectoral FDI, CO2 emissions, Environmental Kuznet Curves, Gross Domestic Product Growth
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H. Akhtar, Mohammad, and Peter J. Buckley. "Motives of Foreign Firms in Pakistan." LAHORE JOURNAL OF ECONOMICS 5, no. 2 (July 1, 2000): 87–106. http://dx.doi.org/10.35536/lje.2000.v5.i2.a5.
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To date no study has been made to explore the FDI motives of foreign firms in Pakistan. An attempt has been made to rectify this position through a survey of both wholly- and majority-owned multinational enterprises (MNEs) in the economy. Market size and growth variables appear to be the most cited reasons for FDI by MNEs in the sample. The use of exploratory factor analysis (EFA) also reinforces the significance of market size as the motive for FDI in Pakistan. The other underlying factors produced by the EFA are: expansion of business, low input prices, desire to lower the transaction costs and psychic distance.
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Ahmad, Mohsin Hasnain, Qazi Masood Ahmed, and Zeeshan Atiq. "The Impact of Quality of Institutions on Sectoral FDI." Foreign Trade Review 53, no. 3 (May 21, 2018): 174–88. http://dx.doi.org/10.1177/0015732517734757.
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This study addresses the issue whether institutional quality affects the sectoral FDI both in short run and long run in Pakistan. By employing ARDL co-integration technique, we analyse the impact of institutional quality on primary, manufacturing and services sectors FDI in Pakistan. The findings suggest that institutional quality matters in attracting FDI in manufacturing and services sectors in the long run while institutional quality does not have a significant impact on FDI in the primary sector. Moreover, results show that the impact of institutional quality on these sectors is not apparent in short run. The main findings from this research are that in long run institutional quality matters to attract substantial FDI in manufacturing and services sector of Pakistan. Hence, policies aimed at strengthening the institutional quality should be the priority for government. JEL: F21, O43, C22
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Raza, Syed Ali. "FOREIGN DIRECT INVESTMENT, WORKERS’ REMITTANCES AND PRIVATE SAVING IN PAKISTAN: AN ARDL BOUND TESTING APPROACH." Journal of Business Economics and Management 16, no. 6 (December 24, 2015): 1216–34. http://dx.doi.org/10.3846/16111699.2013.792867.
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The objective of this study is to investigate the impact of foreign direct investment (FDI) and workers’ remittances on private savings of Pakistan. This study employs ARDL bound testing co-integration approach, rolling window analysis, Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test. Results indicate the significant positive impact of FDI and workers’ remittances on private savings in the long and short run. Causality analyses confirm the bidirectional causal relationship of FDI and workers’ remittances with private savings. It is recommended that policy makers should form friendly policies to attract more FDI and workers’ remittances in the country which leads to increase private savings in Pakistan. This leads to increase more fund for financial intermediaries to increase domestic investment opportunities in the country. This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the impact of FDI and workers’ remittances on private savings of Pakistan by using the long annual time series data and applying more rigorous econometric techniques.
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Hanif Akhtar, Mohammad. "The Determinants of Foreign Direct Investment in Pakistan: An Econometric Analysis." LAHORE JOURNAL OF ECONOMICS 5, no. 1 (January 1, 2000): 1–22. http://dx.doi.org/10.35536/lje.2000.v5.i1.a1.
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This study contributes to an understanding of locational determinants of FDI in Pakistan. Although there exists a great deal of literature in this area, there is hardly any evidence of such a study in the case of Pakistan. Economy level analyses are carried out to explore the determinants of FDI through multivariate regression analysis. The results of the multivariate regression analyses reveal that market size, relative interest rates and exchange rates are the major determinants of FDI in Pakistan. The variables such as market growth and political instability were consistently insignificant in the analyses. However, mixed findings were revealed by the variables such as consumer goods imports and the political regime in Pakistan.
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Shah, Syed Hasanat, Hafsa Hasnat, and Delpachitra Sarath. "The impact of foreign direct investment on trade in Pakistan: the moderating role of terrorism." Journal of Economic Studies 47, no. 5 (April 28, 2020): 1137–54. http://dx.doi.org/10.1108/jes-06-2019-0263.
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PurposePakistan suffered with the menace of terrorism for long and become a front line state in the “War on Terror”. Terrorism shattered Pakistan economy and rendered her external sector vulnerable to instability and uncertainties.Design/methodology/approachTherefore, using system generalized method of moment (GMM), this paper investigates the impact of foreign direct investment (FDI) on exports, imports and trade deficit in the face of unabated terrorism in Pakistan.FindingsThe findings of the paper suggest that as terrorism in Pakistan increased, FDI contribution to Pakistan exports decreased while FDI contribution to Pakistan imports significantly increased. Terrorism also disrupted the chain of local production and increased Pakistan reliance on imports. Thus terrorism widened Pakistan trade deficit of Pakistan and expose Pakistan to external imbalances.Originality/valueDespite rise in organized acts of terrorism and its adverse impact on various departments of economy, hardly any study bothers to check its impact on trade and investment nexus. This is the first study of its nature that looks deep down to understand how terrorism affects the relation of major economic variables.
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Choudhury, Rahul Nath. "FDI in India and Pakistan: Potential Sectors for Bilateral Investment." South Asian Survey 25, no. 1-2 (March 2018): 129–62. http://dx.doi.org/10.1177/0971523119829544.
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Both India and Pakistan follow a liberal and open economic policy. Almost all the sectors of these two economies are open for foreign investment. Both of them have also been able to attract a substantial volume of foreign investment from various corners of the world in almost all the sectors of the economy. During the last decade, many companies from both nations have emerged that have successfully invested in foreign markets. But, to date, there exists no bilateral direct investment between these two developing neighbouring economies. In this connection, the present study tries to explore the trend of the foreign direct investment inflows and outflows from India and Pakistan. The study also tries to explore the potential sector in both economies where either side can invest. Applying a robust three-stage methodology, the study finds that sectors such as power generation, healthcare, pharmaceutical and e-commerce are some of the vital sectors in Pakistan where Indians can invest. Similarly, banking and insurance, cement, and textiles are the prominent sectors in India where Pakistani companies can invest and collaborate.
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Ullah, Atta, Chen Pinglu, Saif Ullah, and Muhammad Ather Elahi. "A Pre Post-COVID–19 Pandemic Review of Regional Connectivity and Socio-Economic Development Reforms: What Can Be Learned by Central and Eastern European Countries from the China-Pakistan Economic Corridor." Comparative Economic Research. Central and Eastern Europe 24, no. 2 (June 30, 2021): 23–43. http://dx.doi.org/10.18778/1508-2008.24.10.
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This paper aims to highlight the role of mutual assistance of China and Pakistan’s regional connectivity through the China‑Pakistan Economic Corridor (CPEC) and show what lessons can be learned by Central and Eastern European Countries (CEECs). CPEC promotes trade, FDI, peace, and sustainable socio‑economic development, and it can help to alleviate the effects of COVID–19 in the region to promote socio‑economic development. In this study, we employed the Rolling Window Approach (Rolling Moving Average Approach) for data analysis of pre‑ and post‑COVID–19. It also focuses on before and after the CPEC initiative’s impact on the Pakistani economy through the Rolling Window Approach and graphical trends. In Pakistan, thanks to CPEC; trade, FDI, remittance, and the stock exchange (PSX) showed an upward shift. Terrorism decreased, which indicates a positive sign for peace and socio‑economic development. However, currency depreciation increased, and the exchange rate trend is going up against the dollar, hurting the economy badly in several ways, such as the balance of payment, current account deficit, and lower some exports. To mitigate these issues, Pakistan and China have taken steps as trade formulated in domestic currency between China and Pakistan. During COVID–19, the provision of health care equipment on a priority basis from China helped to combat the COVID–19 effects and stabilize Pakistan’s Economy. CPEC is structured to connect regional economic zones by forming local, regional, and global value chains. To cope with the COVID–19 impacts, socio‑economic reforms and regional cooperation are suggested for CEECs with a pre‑post circumstances review. Regional integration and cooperation are key to coping with this pandemic. CEECs can learn lessons from CPEC for socio‑economic development, reducing violence, and improving the economy.
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Rasheed, Rukhsana, Mazhar Nadeem Ishaq, and Muhammad Fahad Malik. "Role of Stock Market Performance and Exchange Rate Volatility in the Inflow of Foreign Direct Investment: An Evidence from Pakistan." iRASD Journal of Management 4, no. 1 (March 28, 2022): 77–83. http://dx.doi.org/10.52131/jom.2022.0401.0063.
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The purpose of this study was to evaluate the role of macroeconomic variables i.e., stock market performance and exchange rate fluctuations on Foreign Direct Investment (FDI) for Pakistan. The required data was collected for the period of 1996 to 2020 from the World Bank and State Bank of Pakistan. In data analysis, the unit-root tests were performed to decide whether a time-series is stationary or not. An ARDL is constructed to achieve the results of this study. The results of this study provided the evidences that stock market performance and trade openness have positively and significantly linked with FDI. Whereas real GDP growth rate and exchange rates have negative effects on FDI. It is recommended that the trade policies should be devised in such a manner that these policies should promote exports. Furthermore, policies that ensure stable stock market performance could be an important factor for bringing FDI to Pakistan. However, FDI seems to be ineffective from the changes in the rate of inflation.
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Mujib Ur Rahman, Wisal Ahmad, and Muhammad Faizan Malik. "Economic Determinants of Inflows of FDI in Pakistan." Global Economics Review IV, no. IV (December 30, 2019): 109–17. http://dx.doi.org/10.31703/ger.2019(iv-iv).10.
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An attempt is made in this study to determine the major indicators of the inflow of FDI into Pakistan economy. Data from the time period 1985 to 2019 was used in this research. The level of stationary was checked through Augmented Dickey Fuller and Philips Perron tests. Using the analysis of the Autoregressive Distributed Lag (ARDL), it is identified that GDP, Inflation, Annual Average Exchange Rate and population Growth have a positive (significant) effect on FDI. Moreover, the empirical results also identified a negative but significant effect of financial development on FDI.
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Safdar, Noreen. "How Trade Openness and Foreign Direct Investment Affect Economy of Pakistan." Revista Gestão Inovação e Tecnologias 11, no. 2 (June 5, 2021): 1641–53. http://dx.doi.org/10.47059/revistageintec.v11i2.1787.
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This study is intended to find out how and to what extent FDI and trade openness affect the growth of economy in Pakistan for time span 1980-2018. To examine influence of FDI and trade openness, GDP was used by way of dependent variable whereas FDI, trade openness, exchange rate, and inflation are also taken as independent variables. The ARDL technique is employed in following study to estimate short-run and long-run results. This study concludes that TO have a positive momentous influence on GDP in both long and short run. While Foreign Direct Investment has an optimistic but irrelevant influence on GDP in Pakistan which demonstrates that TO has a more progressive influence on GDP of Pakistan than FDI. Other variables labor force and inflation harm economic growth while the exchange rate affects GDP positively. It is suggested by the study to enhance economic growth, govt should focus on liberalization of trade by reducing tariffs, customs duties, and other types of taxes on exports to enhance the economic growth of Pakistan.
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Lutfi, Abdalwali, Maryam Ashraf, Waqas Ahmad Watto, and Mahmaod Alrawad. "Do Uncertainty and Financial Development Influence the FDI Inflow of a Developing Nation? A Time Series ARDL Approach." Sustainability 14, no. 19 (October 4, 2022): 12609. http://dx.doi.org/10.3390/su141912609.
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The study focuses on investigating the long-term and the short-term effect of uncertainty, and financial development on the FDI inflow of Pakistan during the period 2001–2019. To achieve the objective of this study, we obtained the data from World Development Indicators (WDI) and the European policy uncertainty index’s websites. The dependent variable was FDI inflow. Experimental variables of the study are uncertainty and financial development. The stationarity testing revealed that FDI and Economic Policy Uncertainty (EUP) have weak significance and FD has no significance. However, by taking the first difference, all the variables become highly significant. Similarly, it is further indicated that the optimal lag level is four. Additionally, the bound test confirmed that a long-term relationship (co-integration) existed between the variables of the study. The ARDL estimations conclude that uncertainty and financial development have long-run as well as short-run effects on FDI inflow for Pakistan during the period of study. The uncertainty plays a strong part in decreasing the FDI inflow, whereas financial development plays a strong part in enhancing the FDI inflow in Pakistan during the period of study.
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Yousfani, Kinza, Farhana Khowaja, and Ahmed Ali Yousfani. "The Commitment of Foreign Direct Investment and Foreign Portfolio Investment on the Monetary Development of Pakistan." INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION 5, no. 4 (2019): 7–12. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.54.1001.
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Foreign direct investment has played an essential role in the economic growth of developing countries. The flow of foreign capital in the capital takes place mostly in the form of loans, foreign direct investment (FDI) and foreign portfolio investment (FPI). The FDI could influence higher consumption and Investment in short-term and reflect destructively on long-term growth. However, an increase in FDI may decrease FPI volatility because it enhances the confidence of foreign investors and brings more investment in the home country. The Pakistan growth rate was witnessed from 2001-2016, which was descending due to various macroeconomic variables which influence the foreign direct investment of Pakistan. The FDI affects positively in the development process and economic progress as it supplies capital for developing nations for investment purpose. A few investigations have been directed on contact between FDI, FPI and large-scale manufacturing. Because of this plausibility, FDI impacts monetary extension, and thus, financial solidness impact FDI inflow, the connection among FDI and the development of the economy are likely unique. Also, the remote venture may impact monetary progression legitimately and in a roundabout way. In this manner, it is recommended in reliance hypothesis that FDI stream would not impact long haul practical limit in creating economies. Henceforth the progression of remote capital in a nation happens for the most part as credits, FDI and FPI. Likewise, the determinants of FPI incorporates factors which increment interest for outside trade and urges remote speculators to contribute their capital over the creating scene. Hence, therefore, this paper highlights the importance of FDI and FPI on the growth of developing countries.
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Javed, Muhammad Aslam. "The Influence of Foreign Direct Investment on the GDP Progression of Pakistan." Jurnal Aplikasi Manajemen, Ekonomi dan Bisnis 4, no. 2 (April 16, 2020): 22–33. http://dx.doi.org/10.51263/jameb.v4i2.103.
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The Foreign Direct Investment (FDI) inflows play a very important role in the economic development of the beneficiary country. The objective of this study is to check the impact of the exchange rate (and other variables like Foreign Exchange Rate, Consumer price index, Trade Openness, and Energy Imports) on foreign direct investment in Pakistan by taking annual data from the period 1999-2013 (Monthly Basis).By using Descriptive,Correlation and regression , the effect of Consumer Price Index, exchange rate, trade openness, energy imports on Foreign Direct Investment (FDI) of Pakistan. The study guide the foreign investor and to categorize the factors, that can affect the Foreign Direct Investment (FDI), while investing in Pakistan.
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Munir, Kashif, and Mehwish Iftikhar. "Asymmetric Impact of FDI and Exchange Rate on Tourism: Evidence From Panel Linear and Nonlinear ARDL Model." SAGE Open 11, no. 3 (July 2021): 215824402110465. http://dx.doi.org/10.1177/21582440211046589.
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This study analyzes the long run as well as short run linear and nonlinear impact of foreign direct investment (FDI) and exchange rate on tourism in South Asian countries. The study uses annual panel data of five South Asian countries that is Bangladesh, India, Nepal, Pakistan, and Sri Lanka from 1995 to 2019 and applies panel linear autoregressive distributive lag (ARDL) and nonlinear autoregressive distributive lag (NARDL) methodology to analyze the long run and short run relationship among the variables. Results show that an increase in FDI and appreciation of exchange rate contracts tourism, while a decrease in FDI and depreciation of exchange rate expands tourism in the long run. Both FDI and exchange rate shows asymmetric behavior with tourism in the long run in South Asian countries. Results of individual countries show that FDI has asymmetric impact on tourism in Bangladesh, India, Pakistan, and Sri Lanka in the short run, while exchange rate has asymmetric impact on tourism in Bangladesh, India, Nepal, and Pakistan in the short run. Moreover, unidirectional causality exits from FDI, exchange rate, partial negative sum of FDI, and partial positive sum of exchange rate to tourism as well as from tourism to partial positive sum of FDI and partial negative sum of exchange rate. Therefore, there is a need to expand tourism sector through attracting FDI in tourism sector, while FDI attraction and tourism development must be well coordinated among different departments as well as maintain exchange rate at a reasonable level to encourage international tourism.
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Khan, Ashfaque H. "Foreign Direct Investment in Pakistan: Policies and Trends." Pakistan Development Review 36, no. 4II (December 1, 1997): 959–85. http://dx.doi.org/10.30541/v36i4iipp.959-985.
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Recent years have seen a sharp change in the attitude of developing countries regarding Foreign Direct Investment (FDI).. The growing balance-of-payments difficulties as well as the decline in concessional ajd. have forced many developing countries to reassess their stances on FOI and to take substantial unilateral steps to Iiberalise their inward POI regimes. In spite of liberalising the inward FOI regime, tempering or removal of obstacles to foreign investors, and according liberal incentives, Pakistan's has been a lacklustre performance in attracting FDI. This paper attempts to find out the reasons why Pakistan has not been able to attract sufficiently large FOI despite liberalisation measures. The analysis identifies a number of factors responsible for low FDI in Pakistan. These include the lack of political stability particularly during the last eight years, and unsatisfactory law and order situation particularly in the. city of Karachi, the largest industrial and commercial centre and the only port of the country. The macroeconomiC imbalances and the slowing down of economic activity tog~ther with inconsistent economic policies have also discouraged foreign investors to increase their participation in Pakistan. The slow bureaucratic process, inappropriate business environment, and inadequate infrastructure facilities have played their role in discouraging foreign . investors to undertake investment initiative in Pakistan. The lack of trained, educated, and disciplined labour force, along with complicated and overprotective labour laws, have inhibited business expansion and frightened away productive investment. The cultural and social taboos as well as the quality of life are not conducive to attracting foreign investors to Pakistan. The lack of welcome to foreign investors by government agencies and officials has also been a problem.
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Iqbal, Nadeem, Naveed Ahmad, Zeeshan Haider, and Sonia Anwar. "Impact of Foreign Direct Investment (FDI) on GDP: A Case Study from Pakistan." International Letters of Social and Humanistic Sciences 16 (November 2013): 73–80. http://dx.doi.org/10.18052/www.scipress.com/ilshs.16.73.
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This research study is related to FDI and GDP and the main aim of this research study is to validate the relationship between them. Foreign direct investment (FDI) is considered as a growth accelerating component that has received a great attention in developed countries even in developing and less developed countries during recent years. Now FDI has greater importance in closed economy. FDI benefits any economy in terms of technology, skilled labor and skills transfer to the host countries. For data collection, 30 year data from 1983 to 2012 was collected and the cobb-Douglas Production function is used to test the relationship. Our research variables are Gross Capital Formation (K), Labor (L), Health Expenditure (H), FDI and openness to trade in export oriented economy (OP*FDI). We have followed the Bhagwati’s hypothesis that was: FDI has greater impact on GDP in the export oriented economy. For data analysis, we have examined the descriptive statistics, correlation and regression model. For this we incorporate the production function in regression model. In brief, our results show that there is a positive relationship between FDI and GDP in Pakistan. But, Pakistan has not sufficient flow of FDI during past decades. And main point to consider which is evident through statistics and results is that there is greater impact of FDI in the open trade policy regimes. It is also concluded that FDI impact may be situation and culture related. So, the extent of FDI economic benefits cannot be predicted.
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Nisa, Qamer un, Jabbar Ul Haq, and Nazia Nazeer. "FDI and Wage Nexus: Evidence from the Manufacturing Sector of Pakistan." Global Social Sciences Review VII, no. II (June 30, 2022): 126–36. http://dx.doi.org/10.31703/gssr.2022(vii-ii).13.
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Foreign capital inflows resulted in overall economic growth in many countries, but there are many concerns about its distributive effects,especially on fluctuating wages, which are still being investigated. The aim of this research is to investigate the impact of foreign direct investment on domestic industry wages using micro-level data from Pakistan from 1996-97 to 2007-08. Foreign firms are expected to pay higher wages than that domestic firms in order to attract more labor; thus, if foreign and domestic firms compete in the same labor market, domestic firms would pay higher wages to recruit jobs, resulting in rising average domestic industry wages. The empirical analysis also shows that in Pakistan, FDI inflows raise industry wage premiums.The findings of the study are robust by the inclusion of various globalization and sector-related variables. To reap higher wages, Pakistan's government should promote FDI at the industry level.
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Latief, Rashid, and Lin Lefen. "Foreign Direct Investment in the Power and Energy Sector, Energy Consumption, and Economic Growth: Empirical Evidence from Pakistan." Sustainability 11, no. 1 (January 2, 2019): 192. http://dx.doi.org/10.3390/su11010192.
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Pakistan significantly contributes to the overall economy of South Asia, but, for many years, it has been facing a severe energy crisis. Despite the robust economic growth and a sharp increase in energy demand, no deliberate efforts have been made to meet the energy demand of the country. Similar to other developing countries, foreign direct investment (FDI) plays a key role in the economic development of this country. Pakistan receives FDI from many countries in various sectors of the economy. This paper aims to highlight the present situation of the power and energy sector of Pakistan (PESP), and empirically analyze the causality among the FDI in the power and energy sector, the energy consumption, and the economic growth of Pakistan for the period 1990–2017. The Johansen co-integration and Granger causality tests were employed to find the causal relationships among the variables of interest in the short-run and the long-run. The sector-wise flow of FDI reveals that the power and energy sector of Pakistan (PESP) has comparatively received a higher amount of FDI than other sectors of the economy in recent years. Furthermore, trends of energy production and energy usage reveal a substantial gap in previous years. The results confirm a positive bi-directional short-run causal relationship between economic growth and energy consumption. The results also reveal the presence of long-run causality in the equation of energy consumption. Considering the current situation of PESP, policy-makers should formulate policies to attain the minimum debt level and discourage loan-based investment. Such policies would be helpful to control the severe energy crisis and increase economic growth.
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Ali, Hina, Fouzia Yasmin, and Mahmood ul Hasan. "A Disaggregated Analysis of Foreign Direct Investment and Economic Growth in Pakistan: New insights from Tota and Yamamoto Causality." STATISTICS, COMPUTING AND INTERDISCIPLINARY RESEARCH 3, no. 2 (December 30, 2021): 39–58. http://dx.doi.org/10.52700/scir.v3i2.49.
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This study endeavors to examine the impact of foreign direct investment at aggregated as well as disaggregated level are estimated for economic growth in Pakistan. The data for the period of 1980-2017 was utilized for the analysis. Foreign direct investment at a disaggregated level, i.e. foreign direct investment in low skill-intensive sectors (FDILS), foreign direct investment in medium skill-intensive sectors (FDIMS), and foreign direct investment in high skill-intensive sectors (FDIHS) has been taken as the core variables of the study. Tota and Yamamoto were used to establishing the relationship among the variables in long and the short run. The long-run results of TY causality indicate that TFDI has a positive impact on economic growth. FDILS have a negative impact while FDIMS and FDIHS have a positive impact on the economic growth of Pakistan. The causality results with aggregate FDI explored that a unidirectional causality exists between TFDI and GDP, and the direction of causality running from GDP to TFDI. The causality results with disaggregate FDI indicate that a bidirectional causality exists between GDP, FDILS, FDIMS, and FDIHS. The study discussed some of the issues related to economic growth and FDI in Pakistan. Suggested some measures boost economic growth having specific consideration on low skill, medium skill, and high skill FDI as it has a significant contribution to economic growth. Recent research studies associations among FDI and economic growth in the context of Pakistan.
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Ali, Hina, Fouzia Yasmin, and Mahmood ul Hasan. "A Disaggregated Analysis of Foreign Direct Investment and Economic Growth in Pakistan: New insights from Tota and Yamamoto Causality." STATISTICS, COMPUTING AND INTERDISCIPLINARY RESEARCH 3, no. 2 (December 30, 2021): 39–58. http://dx.doi.org/10.52700/scir.v3i2.49.
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This study endeavors to examine the impact of foreign direct investment at aggregated as well as disaggregated level are estimated for economic growth in Pakistan. The data for the period of 1980-2017 was utilized for the analysis. Foreign direct investment at a disaggregated level, i.e. foreign direct investment in low skill-intensive sectors (FDILS), foreign direct investment in medium skill-intensive sectors (FDIMS), and foreign direct investment in high skill-intensive sectors (FDIHS) has been taken as the core variables of the study. Tota and Yamamoto were used to establishing the relationship among the variables in long and the short run. The long-run results of TY causality indicate that TFDI has a positive impact on economic growth. FDILS have a negative impact while FDIMS and FDIHS have a positive impact on the economic growth of Pakistan. The causality results with aggregate FDI explored that a unidirectional causality exists between TFDI and GDP, and the direction of causality running from GDP to TFDI. The causality results with disaggregate FDI indicate that a bidirectional causality exists between GDP, FDILS, FDIMS, and FDIHS. The study discussed some of the issues related to economic growth and FDI in Pakistan. Suggested some measures boost economic growth having specific consideration on low skill, medium skill, and high skill FDI as it has a significant contribution to economic growth. Recent research studies associations among FDI and economic growth in the context of Pakistan.
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Ali, Hina, Fouzia Yasmin, and Mahmood ul Hasan. "A Disaggregated Analysis of Foreign Direct Investment and Economic Growth in Pakistan: New insights from Tota and Yamamoto Causality." STATISTICS, COMPUTING AND INTERDISCIPLINARY RESEARCH 3, no. 2 (December 30, 2021): 39–58. http://dx.doi.org/10.52700/scir.v3i2.49.
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This study endeavors to examine the impact of foreign direct investment at aggregated as well as disaggregated level are estimated for economic growth in Pakistan. The data for the period of 1980-2017 was utilized for the analysis. Foreign direct investment at a disaggregated level, i.e. foreign direct investment in low skill-intensive sectors (FDILS), foreign direct investment in medium skill-intensive sectors (FDIMS), and foreign direct investment in high skill-intensive sectors (FDIHS) has been taken as the core variables of the study. Tota and Yamamoto were used to establishing the relationship among the variables in long and the short run. The long-run results of TY causality indicate that TFDI has a positive impact on economic growth. FDILS have a negative impact while FDIMS and FDIHS have a positive impact on the economic growth of Pakistan. The causality results with aggregate FDI explored that a unidirectional causality exists between TFDI and GDP, and the direction of causality running from GDP to TFDI. The causality results with disaggregate FDI indicate that a bidirectional causality exists between GDP, FDILS, FDIMS, and FDIHS. The study discussed some of the issues related to economic growth and FDI in Pakistan. Suggested some measures boost economic growth having specific consideration on low skill, medium skill, and high skill FDI as it has a significant contribution to economic growth. Recent research studies associations among FDI and economic growth in the context of Pakistan.
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Mansoor, Abdul. "Bearing the Brunt: The Effect of Terrorism on the Foreign Direct Investment in South Asian Association for Regional Cooperation (SAARC) Nations." University of Wah Journal of Social Sciences 5, no. 1 (June 8, 2022): 167–86. http://dx.doi.org/10.56220/uwjss2022/0501/10.
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The current state of terrorism has posed serious challenges to macroeconomic environment stability by causing the dislodgment of foreign direct investment (FDI). This study aims to find the impact of terrorism along with other important policy variables such as FDI, Terrorism, law and order, Tariff, and Government regulation in the SAARC member nations, namely, Bangladesh, Bhutan, India, Nepal, Pakistan, Afghanistan, Maldives, and Sri Lanka. Utilizing a panel econometric estimation model on annual data from 1990-2019, the results of the study show a significant negative impact of terrorism and law and order situations in the SAARC countries. Whereas the magnitude of FDI is technology-driven in Pakistan, Bangladesh, and Afghanistan where there is a deep focus on the physical structural transformation. This empirically establishes the fact that terrorism is a serious threat to FDI and economic growth for the economies in this region. Key Words: FDI; Terrorism; Tariff, SAARC
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Raza, Ali, Zeshan Ahmed ., Mohammad Ahmed ., and Tanvir Ahmed . "The Role of FDI on Stock Market Development: The Case of Pakistan." Journal of Economics and Behavioral Studies 4, no. 1 (January 15, 2012): 26–33. http://dx.doi.org/10.22610/jebs.v4i1.299.
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The purpose of this study is to empirically analyze the role of foreign direct investment in developing host country’s stock markets and to examine whether they are related or not. The key interest turns around the admiring role of FDI in Stock market development of Pakistan. Our work also aims to investigate the effect of foreign direct investment along with domestic savings, exchange rate and inflation in developing Pakistan stock markets in a rapidly changing political environment. This study applies Ordinary Least Square (OLS) method of regression by using annual time series data for the period 1988-2009 in case of Pakistan to estimate empirical relationships among variables. The results disclose a positive impact of foreign direct investment along with other explanatory variables in developing Stock markets of Pakistan. The study findings can be used to help government policy makers to encourage FDI and take various steps to provide incentives and save foreign investors interest in a volatile political environment that prevailing in the country. Adequate facility of infrastructure can enhance FDI. The volatility of exchange rate and inflation rate should also be minimized through monitory policy while domestic savings must also be encouraged in the country through appropriate and encouraging saving policies. Our effort exclusively study development of Stock markets in Pakistan with special reference to foreign direct investment and other variables. Our study depicts a closer relationship between FDI and Stock Market Development.
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Saad, Muhammad, and Iing Lukman. "DETERMINANTS OF THE INFLOW OF FOREIGN DIRECT INVESTMENT: EMPIRICAL EVIDENCE FROM PAKISTAN." Pakistan Journal of Humanities and Social Sciences Research 3, no. 01 (June 30, 2020): 65–77. http://dx.doi.org/10.37605/pjhssr.3.1.6.
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This study aims to investigate empirically the various factors which affect the inflow of Foreign Direct Investment (FDI) in Pakistan over the period of 1980 to 2018 and used in this study are population, GDP per capita represent market size, energy consumption, inflation rate and financial development as explanatory variables. The Augmented Dickey Fuller and Philips Perron tests were used to check stationarity level of the data series; the Autoregressive Distributed Lag (ARDL) approach was employed. The empirical results show that GDP, Inflation, Energy and population growth have positive and significant effect on FDI, while the financial development have negative and significant effect on FDI. Findings of the study suggest that the government should make suitable policies to attract more FDI into Pakistan in order to improve economic growth and thereby society welfare.
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Rizvi, Syed Zia Abbas, and Mohammad Nishat. "The Impact of Foreign Direct Investment on Employment Opportunities: Panel Data Analysis (Empirical Evidence from Pakistan, India and China)." Pakistan Development Review 48, no. 4II (December 1, 2009): 841–51. http://dx.doi.org/10.30541/v48i4iipp.841-851.
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Over the past two decades, the continent of Asia received a large amount of FDI from developed regions. Additionally, in the Asia, India and China received a major chunk of foreign direct investment and FDI flows to Pakistan also increased significantly. Many studies show that the inflow of FDI plays a significant role in generating employment in host countries. The objective of this study is to undertake an empirical study on creation of employment opportunities by FDI during 1985-2008 in the Asian region. In this regard, we have taken the sample of three countries i.e. Pakistan, India and China from the same region. The Im-Pesaran-Shin (IPS) test of unit root is applied to find out the order of integration. The long run relationship is investigated through the Pedroni (1999) test of panel cointegration. At last, the Seemingly Unrelated Regression (SUR) method is used for estimation of the impact of FDI inflows on employment levels in three countries. Implications for FDI policy are spelt out in the light of these empirical results. JEL classification: F23, E24, C23 Keywords: FDI, Employment, Panel Data
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Zeeshan, Muhammad, Jiabin han, Alam Rehman, and Fakhr E. Alam Afridi. "The Unrevealing Nexus between Foreign Direct Investments, Institutional Quality and Financial Development in Pakistan." Revista Amazonia Investiga 9, no. 36 (January 29, 2021): 22–37. http://dx.doi.org/10.34069/ai/2020.36.12.2.
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The study examines the nexus between FDI, institutional quality, and financial development in Pakistan. We believe that it is a novel research attempt as it covers both democratic and non-democratic regimes. We use linear ARDL methodology to predict the nature of the relationship as a baseline estimator and Granger causality as a robustness check for further validation of results. The study covers the period from 1990 to 2018. We find that both FDI and institutional quality positively affect financial development in Pakistan. We find bi-directional causality between financial development and institutional quality and a unidirectional casualty between FDI and institutional quality. Likewise, we also find a unidirectional causality between FDI and financial development, running from financial development to FDI. The study has some managerial implications for policymakers to strengthen the country’ macroeconomic environment and to encourage institutional reforms to boost up the confidence of local as well as foreign investors.
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Iram, Somia, and Muhammad Nishat. "Sector Level Analysis of FDI-Growth Nexus: A Case Study of Pakistan." Pakistan Development Review 48, no. 4II (December 1, 2009): 875–82. http://dx.doi.org/10.30541/v48i4iipp.875-882.
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The main objective of the study is to empirically investigate the differential impact of services and manufacturing Foreign Direct Investment (FDI) on economic growth over the period of 1972 to 2008. The study further examines the role of FDI in presence of macroeconomic instability and privatisation. For the investigation of long run, Autoregressive distributed lag model (ARDL) has been used. For short run results, we used Error correction method (ECM). Our empirical results show that FDI inflow in both, service sector as well as manufacturing is contributing to economic growth positively. But it is apparent from the results that contribution of services FDI to growth is greater than that of manufacturing FDI to growth. Furthermore, the results provide coherent and sound policy recommendations for further policy adaptation regarding sectors. JEL classification: F23, F36, F43, C32 Keywords: Foreign Direct Investment, Economic Growth, Manufacturing Sector, Service Sector, Co-integration
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Gilal, Muhammad Akram, Khadim Hussain, Muhammad Ajmair, and Sabahat Akram. "Foreign Direct Investment and Trade Components in Context of Pakistan." European Scientific Journal, ESJ 12, no. 34 (December 31, 2016): 384. http://dx.doi.org/10.19044/esj.2016.v12n34p384.
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Objective of this paper was to evaluate the impact of foreign direct investment (FDI) on trade components (exports and imports) of Pakistan using annual data from 1975 to 2013. Engle and Granger two step cointegration method was used for conducting the analysis. This method was adopted because all the variables of interest were non stationary in level and stationary at first difference. Results provide evidence of long run cointegrating relationship as well as short run relationship between FDI and trade components. A rise in FDI causes both exports and imports to increase. Based on these empirical findings, we strongly recommend Government of Pakistan to focus on the strategy of investment liberalization as well as trade openness.
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Ali, Irfan, and Zafar Mahmood. "Technology Transfer, Development, Deployment and Productivity Performance in Pakistan." NUST Journal of Social Sciences and Humanities 3, no. 1 (January 21, 2021): 95–128. http://dx.doi.org/10.51732/njssh.v3i1.18.
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Productivity (TFP) performance is not only influenced by the direct effects of human capital, R&D (technology development)), embodied and disembodied forms of technology transfer and know-how through capital imports, FDI and use of foreign IPRs (technology transfer activities), but importantly is indirectly affected by compo-nents like the interactive effects of machinery and equipment imports, royalties and licenses fee payments, FDI, human capital and technology deployment. In this context, we analyzed internal technology building capabilities, trade-related technology transf-er activities and foreign technology absorption capabilities. The ARDL technique demonstrates that stable long-run association exists amongst all the chosen variables. The results indicate that investment in human capital boost the TFP, in addition expenditures on R&D, imports of machinery are crucial determinants of TFP growth. Surprisingly, FDI appears with a negative sign but the indirect effect of FDI through its interaction with human capital is positive. This indicates that FDI in the presence of human capital plays a favourable role in enhancing TFP. Moreover, the imports of machinery directly and indirectly, in association with both human capital and R&D, increase the growth of TFP. These findings provide evidence that internal technology building capabilities enhances the TFP growth significantly; while, embodied form of technology transfer has a positive and significant impact on the growth of TFP; whereas, disembodied technology transfer exerts positive but statistically insignificant impact on TFP growth. Furthermore, the study lends support for the existence of strong foreign technology absorption capabilities.
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Raza, Ali, Muhammad Azam, and Muhammad Tariq. "The Impact of Greenfield-FDI on Socio-Economic Development of Pakistan." Higher School of Economics Economic Journal 24, no. 3 (2020): 415–33. http://dx.doi.org/10.17323/1813-8691-2020-24-3-415-433.
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Anam Bibi, Syed Tahir Hussain Shah, Syed Imran Rais, Khalid Zaman, Abdul Mansoor, and Shakira Ejaz. "Relationship between Monetary Policy, Domestic Prices, Financial Development and Economic Growth: Evidence from Pakistan." Journal of Economic Info 7, no. 1 (May 3, 2020): 11–25. http://dx.doi.org/10.31580/jei.v7i1.1178.
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The objective of the study is to examine the relationship between monetary policy, domestic prices, financial development and economic growth in a context of Pakistan by using a consistent time series data from 1980 to 2016. The results show that real interest rate increases exchange rate that negatively influenced on country’s economic growth, which confirmed that contractionary monetary policy is ineffective to stabilize country’s economic growth. The trade linearization policies hurt Pakistan’s economic growth, which invalidate the positive effect of globalization in developing countries. The inbound FDI has a positive impact on economic growth, whereas exchange rate and changes in price level both have a negative impact on inbound FDI in a country. The domestic saving rate substantially increases inbound FDI in a country. The positive impact of money supply on inflation confirmed the monetarist view of inflation, i.e., money supply leads to inflation. Thus, the overall conclusion confirmed the sound viability of expansionary monetary policy in a given country for sustained growth.
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Haq, Ihtisham ul, Bahtiyar Mehmed, Sisira Kumara Naradda Gamage, Piratdin Allayarov, Dilawar Khan, and Zeeshan Zaib Khattak. "Nexus between export variety and carbon emissions in Pakistan: The role of FDI and technological development." PLOS ONE 17, no. 1 (January 26, 2022): e0263066. http://dx.doi.org/10.1371/journal.pone.0263066.
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Carbon emissions constitute a large portion of greenhouse gases that are responsible for global warming and climate change. This study examines the impact of export variety on carbon emissions along with foreign direct investment (FDI) and technological development as determinants of environmental degradation in Pakistan. Moreover, this study is conducted in the context of the environmental Kuznets curve hypothesis (EKC). This study applies dynamic ordinary least squares and error correction models for long-term and short-term estimates, respectively. The results indicate that the EKC hypothesis is valid in the long term. This implies that Pakistan’s economy reached the threshold level of income, after which an increase in income was not responsible for environmental degradation. Export variety restrains environmental degradation in the short term and is not a significant factor in the long term. Energy consumption has aggravated environmental degradation, while FDI and technological development are restraining environmental degradation. Policy measures are recommended to curb environmental degradation in Pakistan.
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Atiq, Faaeza, Mudassir Uddin, and Irfan Hussain Khan. "The Impact of Key Macroeconomic Determinants on Pakistan’s Economy." Global Social Sciences Review V, no. II (June 30, 2020): 260–72. http://dx.doi.org/10.31703/gssr.2020(v-ii).25.
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This paper intended to analyze key Macroeconomic factor’s effect on Pakistan’s economic development. The annual time-series data has been taken from 1980 to 2018 on External Debts, Foreign Direct investment. Consumer Price Index and Term of Trade. Variables stationarity is analyzed by ADF and Ng-Perron tests; afterwards, JJ test and Granger Causality test are used for Long-run (LR) & Short-run(SR) associations between variables, respectively. Also, Residuals Diagnostic Test used for checking residuals assumptions and CUSUM and CUSUMSQ are used for checking parameter constancy. The result shows significantly negative and positive long-run effects of External Debts and Foreign Direct Investment (FDI) respectively on the economic growth of Pakistan. Albeit, Consumer Price Index (CPI), Term of Trade (TOT) and, FDI significantly Granger cause economic growth in the short-run. Research suggests that economic policies devised in such a way that deteriorates External Debts and attract foreign investments and strengthen the economic growth of Pakistan in the long-term.
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Arslan Pervez, Arslan Pervez. "Impact of Tariff Structures on FDI in Pakistan." IOSR Journal of Business and Management 7, no. 2 (2013): 83–88. http://dx.doi.org/10.9790/487x-0728388.
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Shah, Syed Hasanat, Hafsa Hasnat, Simon Cottrell, and Mohsin Hasnain Ahmad. "Sectoral FDI inflows and domestic investments in Pakistan." Journal of Policy Modeling 42, no. 1 (January 2020): 96–111. http://dx.doi.org/10.1016/j.jpolmod.2019.05.007.
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Uddin, Moshfique, Anup Chowdhury, Sheeba Zafar, Sujana Shafique, and Jia Liu. "Institutional determinants of inward FDI: Evidence from Pakistan." International Business Review 28, no. 2 (April 2019): 344–58. http://dx.doi.org/10.1016/j.ibusrev.2018.10.006.
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Karim, Rehmat, Faqeer Muhammad, Javed Akhter Qureshi, Naveed Razzaq, and Akber Ali. "Environmental Pollution a Negative Externality from China Pakistan Economic Corridor (CPEC): Policy implications for Pakistan." International Journal of Economic and Environmental Geology 11, no. 3 (December 4, 2020): 5–8. http://dx.doi.org/10.46660/ijeeg.vol11.iss3.2020.482.
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The China-Pakistan Economic Corridor (CPEC) isconsidered as the ‘flagship’ project of China’s Belt andRoad Initiative (BRI) and has been widely acclaimedby both Chinese and Pakistani officials often terming itas ‘game-changer’ to overcome Pakistan’s lingeringissues of energy and economic crisis. Within theframework of CPEC, China is investing more than 56billion US dollars as Foreign Direct Investment (FDI)in various energy and infrastructure projects includinga vast network of railways, highways, economic zonesand gas pipelines. While much has been debated andwritten about various projects under CPEC in theexisting academic discourses, vis-à-vis threats to thebiodiversity (Nabi et al., 2017), its potentialimplications to environmental hazards (Ali, 2018) andto overcome energy shortfall of Pakistan (Kugelman,2017). However, scientific study to reinforce the issuesof environmental pollution, particularly related toCEPEC coal-based energy projects have been stilllacking.The pertained literature on CPEC consisted qualitativestudies to inspect and judge different aspects such asimportance of CPEC for both countries and its effectson geo political of South Asia. Challenges for CPEC inPakistan, South Asia and foreign policy betweenChina-Pakistan), as Nan, (2015) explained that thisproject is not only valuable for Pakistan and China, butit is also beneficial for the global economy byincluding several other countries. Furthermore, Li andSun, (2015) and Irshad, etal, (2015) reported theimportance of CPEC and it long and short-termbenefits for both countries. Further, Hussain and Khan(2017) also stated that it will enhance the cooperationbetween two countries and advantageous for Chinese,Middle Eastern and South Asian people (Ali, 2016).Further, Wolf, (2017) explained the insights, potentialsand challenges concerning CPEC and domestic levelcooperation between China and Pakistan.In addition, quantitative studies focused to shed a lighton the impact of China Pakistan Economic Corridor(CPEC) (Such as, impact on gdp, socio-economy,trade, stock market, energy sector and infrastructure).CPEC will build rails and roads infrastructure andinfrastructure development may decrease the povertyand increases the agriculture development in Pakistan(Ahmed & Mustafa, 2016). Most recent articleexamined the impact of CPEC impact on energy(energy consumption and energy saving potential) inthe prospect of Pakistan (Mirza, Fatima, Ullah, 2019).A latest study surveyed in Pakistan and their researchresults shows that entrepreneur’s attitude andintentions to China and Pakistan Economic Corridor(CPEC) development is positive, it means CPECproject also designing an entrepreneurial environment(Kanwal et al., 2019).A large number of studies (Begum, etal., 2015; Ozturk,and Acaravci, 2010) have discussed various elementsand causes of CO2 emissions. Similarly, manyresearches (Khurshid, etal., 2018; Hadi, etal., 2018;Hussain, 2017; Hussain, 2015) on Pakistan-Chinarelations in the context of economy, society andgeopolitical point of view. Present study is aimed toinvestigate the CPEC development effects i.e. grossdomestic product (gdp), foreign direct investment (fdi),trade openness (top), energy consumption (enguse) onenvironmental pollution (CO2) in Pakistan usingFMOLS and DOLS methods.
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Fazal, Snober. "An Empirical Analysis of Energy Consumption, Environmental Emissions, and Economic Growth for Pakistan." iRASD Journal of Energy & Environment 1, no. 1 (June 30, 2020): 38–48. http://dx.doi.org/10.52131/jee.2020.0101.0004.
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The use of energy plays an imperative role in the expansion of the economy so, this study examined the effect of consumption of energy and environment to economic development which derives the economic development of Pakistan’s economy. This study used the famous time series ARDL methodology to empirically determine the impact of energy and environment on Pakistan economic development. Results indicates that in both short and long-run, consumption of energy and GDP level boosts economic development. While on the other hand, FDI and non-renewable-energy (fossil fuel) create hurdles in Pakistan's economic development. Due to these hurdles, increase the demand for renewable energy sources like solar and wind energy and investment in the renewable energy sector. Because it boosts economic development with the decrease in carbon emission. So, Pakistan needs to adopt these renewable energy sources which boost economic development and also mitigate the carbon emission level, which creates the environment clean and healthy.
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Sana, Moniba, and Atif Ali Jaffri. "Gender-Based Labour Force Participation and Wage Gap in Pakistan: Does Globalization Matter." JISR management and social sciences & economics 18, no. 1 (June 30, 2021): 137–50. http://dx.doi.org/10.31384/jisrmsse/2020.18.1.10.
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This study has investigated the impact of globalisation on gender-based gaps in the labor market (GBGLM) of Pakistan for the period 1982-2017. Particularly, the study has estimated the impact of trade openness(OPEN), foreign direct investment (FDI), workers’ remittance inflows(WRI) and exchange rate(ER) on gender-based labour force participation rate differential (LFPRD) and wage differential (WD). The study has applied the Autoregressive Distributed Lag (ARDL) model and Johansen’s cointegration approach on two models estimated for LFPRD and WD. The error correction models (ECM) have confirmed an error correction mechanism as reflected by negative and significant coefficients of lagged ECM terms. The study has applied all relevant diagnostic tests to ensure the validity of empirical findings. The results of the study indicated that in the long run, OPEN reduced LFPRD and WD, whereas, FDI augmented LFPRD. ER depreciation decreased LFPRD and augmented WD. WRI also augmented LFPRD and WD. The study concluded that OPEN and Real GDP are prominent factors in reducing WD and LFPRD of Pakistan, whereas, FDI and WRI augmented LFPRD. This is a very important finding in the context of the stagnant real sector of Pakistan where agriculture and industry have performed lower than rapidly growing services sector of Pakistan. Since most of the exports emanate from the real sector of Pakistan, therefore, relatively more focus on real sector as compared to financial inflows can play a crucial role in reducing GBGLM of Pakistan. The policy implication based on results is that to reduce GBGLM of Pakistan, trade liberalisation with special focus on the commodity-producing sector is right policy option in Pakistan
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Mahmood, Muhammad Tahir. "The Impact of FDI on Economic Development of Pakistan." Journal of Social and Development Sciences 3, no. 2 (February 15, 2012): 59–68. http://dx.doi.org/10.22610/jsds.v3i2.686.
Full textAbstract:
The foreign direct investment has made its position better as a bundle of benefits during the last three decades at the global level. The ultimate result of its benefits for the recipient countries is often sought in term of economic development. Such results do not appear in the same fashion in all recipient economies and so provide the space to investigate this nexus at country level. This study is an endeavor to examine empirically the impact of FDI on economic development of Pakistan. For this purpose, the time series data covering the period (1971-2009) were used. For data analysis, the bound testing approach to co integration within the framework of the Autoregressive Distributed Lag (ARDL) was utilized. The findings of the study supported the hypothesis of positive impact of FDI on economic development of Pakistan. The results also endorsed the views that the FDI is more effective than that of domestic investment.