Lingering effects of foreign resource dependency in Pakistan: Assessing gains from domestic resources

Mubbasher Munir (), Muhammad Meo (), Kinza Younas (), Noman Arshed and Asma Khalid Jamil ()

Economic Journal of Emerging Markets, 2021, vol. 13, issue 2, 178-187

Abstract: Purpose - This study explores the asymmetric effects of FDI (Foreign Direct Investment) on economic growth in Pakistan.Methods - This paper uses an Asymmetric Effects ARDL (Autoregressive Distributed Lag) model.Findings - The results show that the effects of increasing and decreasing FDI are not equal. The study concludes that reducing FDI is more beneficial for economic growth, particularly in the longer horizon. It mobilizes domestic investment and promotes financial freedom while reducing the reliance on pollution-intensive multinational corporations and taps indigenous knowledge gains.Implications - This study proves that self-reliance is more beneficial for the case of Pakistan.Originality - The researchers and policymakers are unclear about the merits and demerits of FDI as a substitute for domestic investment. Empirical studies are majorly convinced that an increase in FDI generally merits economic growth but weighs in the Pollution Haven Hypothesis and ignores the indigenous knowledge-based domestic resource.

Keywords: domestic investment; pollution haven hypothesis; multinational corporations (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journal.uii.ac.id/JEP/article/view/19075/11682 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uii:journl:v:13:y:2021:i:2:p:178-187:id:19075

Access Statistics for this article

Economic Journal of Emerging Markets is currently edited by Ana Yuliani

More articles in Economic Journal of Emerging Markets from Universitas Islam Indonesia
Bibliographic data for series maintained by Ana Yuliani ().