EFFECTS OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM PAKISTA

Akhtiar Ali (), Abdur Rahman Aleemi (), Muhammad Tariq () and Kanwal H.Lakhani
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Akhtiar Ali: Wuhan University of Technology, China
Abdur Rahman Aleemi: Institute of Business & Technology, Karachi
Muhammad Tariq: Institute of Business & Technology, Karachi
Kanwal H.Lakhani: Institute of Business & Technology, Karachi

IBT Journal of Business Studies (JBS), 2014, vol. 10, issue 2, 149-159

Abstract: Purpose FDI is one of the very eminent factors of world economy.It especially plays an effective role in developing countries’ economic growth, for that reasons developing economies struggle a lot to invite FDI.The previous researches provide support that FDI has a positive impact on growth of an economy.In this study the role of FDI along with other explanatory variables like gross capital formation, labor force participation and public spending against the economic growth.Methodology/Sampling The variables supplemented into the model are based on wellestablished and long standing economic theory, tested under the standard OLS regression.The data were referred from United Nation Conference for Trade and Development UNCTAD and State Bank of Pakistan FDI database.Time period for this is from 1980 to 2012.All in all32years samples were taken for study in this research.Findings The main conclusions drawn are that in the case of Pakistan, FDI and Labor force participation is found to be positively associated with economic growth.Practical Implications This study is going to help policy makers to take active measures and formulate strategies that will enhance economic growth in the country.

Keywords: Foreign direct investment; economic growth, Pakistan (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:10:y:2014:i:2:p:149-159

DOI: 10.46745/ilma.ibtjbs.2014.102.11

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