Manuscript Title:

UNREVEALED DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN

Author:

SADIA HUSSAIN, Dr. SHAFEI MOIZ HALI, HAMZA IFTIKHAR, Dr. SUMERA IQBAL, ANBREEN YASIN

DOI Number:

DOI:10.17605/OSF.IO/ZEVKH

Published : 2021-12-17

About the author(s)

1. SADIA HUSSAIN - Lecturer BZU Vehari campus, Pakistan.
2. Dr. SHAFEI MOIZ HALI - Assistant Professor, Government and Public Policy Department, National Defence University, Islamabad, Pakistan.
3. HAMZA IFTIKHAR - PhD scholar University technology Malaysia, Kualalumpur.
4. Dr. SUMERA IQBAL - Assistant Professor, Business School, Bahria University Islamabad, Pakistan.
5. ANBREEN YASIN - Teacher, GGHS 41/wb Vehari, Punjab, Pakistan.

Full Text : PDF

Abstract

The aim of this paper is to explore the important and unrevealed determinants of FDI in Pakistan. This study is used foreign direct investment as dependent variable, while the interest rate, financial deepening, stock exchange, imports, exports, and real GDP as independent variables .The data of the variables is extracted from World Development Indicator. The range of data use for estimation is from 1975 to 2019.The ADF (Augmented Dickey Fuller 1979) apply at the level plus at the 1st difference to authenticate the stationary values of the variables. The study also applies other test of the ARDL estimation like cusum and cusum of square at 5 % of level. These results are based on EViews 10 estimations. According to analysis foreign direct investment enhance the economic growth of Pakistan. With the help of foreign direct investment Pakistan can be able to achieve the higher level of economic growth. The results show that the foreign direct investment is low in Pakistan, but it positively influences the economic development.


Keywords

FDI, Pakistan, ARDL model, Trade openness, Economic growth.