The Causal Relationship between Foreign Direct Investment, Imports and Exports in Pakistan

Muhammad Chani, Muhammad Azam and Akmal Younas
Additional contact information
Muhammad Azam: PhD Scholar, Federal Urdu University, Islamabad, Pakistan
Akmal Younas: M.B.A Student, National College of Business Administration and Economics (NCBA&E), Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2014, vol. 3, issue 3, 142-149

Abstract: This study evaluates the causal relationship between Foreign Direct Investment (FDI), imports and exports in Pakistan by using the time series data from 1972to 2009. Ng. Parren Unit Root Test, Johansen Cointegration Test and Granger Causality are used for empirical analysis. The results indicate that there is long run equilibrium relationship among FDI, imports and exports. The estimates of causality test indicate that there is feedback relationship between FDI and export performance in the country. Furthermore, the results are in favor of bidirectional causality between imports and FDI. The inferences drawn from the study have stronger policy implication for FDI.

Keywords: Foreign Trade; FDI; Imports; Exports; Trade Balance; Trade Liberalization (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bbejournal.com/index.php/BBE/article/view/211/166 (application/pdf)
https://bbejournal.com/index.php/BBE/article/view/211 (text/html)

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:rfh:bbejor:v:3:y:2014:i:3:p:142-149

Access Statistics for this article

Bulletin of Business and Economics (BBE) is currently edited by Dr. Muhammad Irfan Chani

More articles in Bulletin of Business and Economics (BBE) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().