EconPapers    
Economics at your fingertips  
 

Sector Level Analysis of FDI-Growth Nexus: A Case Study of Pakistan

Somia Iram and Muhammad Nishat
Additional contact information
Somia Iram: Applied Economics Research Centre (AERC), University of Karachi, Karachi
Muhammad Nishat: Institute of Business Administration (IBA), Karachi

The Pakistan Development Review, 2009, vol. 48, issue 4, pages 875–882

Abstract: 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

Keywords: Foreign Direct Investment; Economic Growth; Manufacturing Sector; Service Sector; Co-integration (search for similar items in EconPapers)
JEL-codes: F23 F36 F43 C32 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2009/Volume4/875-882.pdf (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: http://EconPapers.repec.org/RePEc:pid:journl:v:48:y:2009:i:4:p:875-882

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics
Contact information at EDIRC.
Series data maintained by Khurram Iqbal ().

 
Page updated 2012-05-05
Handle: RePEc:pid:journl:v:48:y:2009:i:4:p:875-882