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Nexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistans

Hummera Saleem (), Malik Shahzad Shabbir (), Syed Ali Raza Shah () and Jalal Shah ()
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Hummera Saleem: Department of Economics, NUML University, Pakistan
Malik Shahzad Shabbir: Department of Management Science, University of Lahore, Pakistan
Syed Ali Raza Shah: Balochistan University of Engineering and Technology Khuzdar, Pakistan
Jalal Shah: Balochistan University of Engineering and Technology Khuzdar, Pakistan

iRASD Journal of Economics, 2021, vol. 3, issue 3, 272-280

Abstract: The key objective of this paper is to examine the direct and causal association between foreign direct investment (FDI) and the reduction of poverty in Pakistan. Poverty reduction is the fundamental task and issue for developing economies like Pakistan. This study uses annual data set from 1987 to 2018 and implies the ARDL method for data analysis. The data has been taken from economic surveys of the Federal statistics house (FSH) of Pakistan. The finding shows the bidirectional causality between poverty and FDI. The outcome of this study also reveals that the causal effects of FDI on reducing poverty are stronger than poverty reduction effects on FDI.

Keywords: Poverty reduction; Foreign direct investment; Household Integrated Economic Survey; ARDL; Pakistan (search for similar items in EconPapers)
Date: 2021
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DOI: 10.52131/joe.2021.0303.0043

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