IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN

Amna Muhammad Gudaro (), Imran Umer Chhapra () and Salman Ahmed Sheikh
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Amna Muhammad Gudaro: Ecnomics, Civil Aviation College, Karachi
Imran Umer Chhapra: KASB Institute of Technology KASBIT Karachi
Salman Ahmed Sheikh: Ecnomics Department IBA Karachi

IBT Journal of Business Studies (JBS), 2012, vol. 8, issue 2, 22-30

Abstract: 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 ImplicationsOn 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

Keywords: GDP; FDI; CPI (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:8:y:2012:i:2:p:22-30

DOI: 10.46745/ilma.ibtjbs.2012.82.0

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