Impact of Foreign Capital Inflows on Household Savings in Pakistan

Muhammad Abdullah Idrees, Ayesha Khan, Muhammad Arsalan Khan, Muhammad Bilal Raees and Muniza Syed
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Muhammad Abdullah Idrees: Indus University, Pakistan
Ayesha Khan: Indus University, Pakistan
Muhammad Arsalan Khan: Indus University, Pakistan
Muhammad Bilal Raees: Indus University, Pakistan
Muniza Syed: Newports Institute of Communication and Economics, Pakistan

European Journal of Business and Management Research, 2020, vol. 5, issue 4

Abstract: This study aims to discover the impact of foreign capital inflows (FDI, RT and FA) on household savings of Pakistan. Data used in this study has been obtained from the website of State Bank of Pakistan for the period of 1981-2010. Statistical tools including multiple regressions analysis was applied for analysis. Results explain that foreign direct investment (FDI), remittances (RT) are having positive and significant impact on household saving (HS) but foreign aid (FA) is having negative and insignificant impact on household saving, so it is recommended that if a developing country like Pakistan wants to increase the household saving it should give thoughtful importance to FDI and RT than FA with respect to household savings in Pakistan.

Keywords: Household Saving; Foreign Direct Investment; Remittances; Foreign Aid (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:epw:ejbmr0:v:5:y:2020:i:4:id:50436

DOI: 10.24018/ejbmr.2020.5.4.436

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