Capital inflows and economic growth in Pakistan

Syed Raza, Muhammad Sarwar Sabir and Farhan Mehboob

MPRA Paper from University Library of Munich, Germany

Abstract: This study intends to investigate the impact of foreign capital inflow on economic growth of Pakistan during the period of 1985-2010. The empirical analysis is based on multiple regression technique. Results show that foreign direct investment (FDI), foreign portfolio investment (FPI) and remittances are positive and significant relationship with economic growth. While foreign aid shown significant but negative relationship with economic growth. Finding further suggests that foreign direct investment, foreign portfolio investment and remittances enhance the economic growth. And it is recommended that country like Pakistan should enhance the domestic resources to break the vicious circle of foreign aid.

Keywords: Foreign direct investment; foreign portfolio investment; remittances; foreign aid; economic growth; capital inflow (search for similar items in EconPapers)
JEL-codes: A11 F35 (search for similar items in EconPapers)
Date: 2011-09-04
New Economics Papers: this item is included in nep-cwa and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36790

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