Impact of FDI on Economic Growth: Evidence from Pakistan

Hafiz Muhammad Abubakar Siddique, Romana Ansar, Muhammad Mustasim Naeem and Sajid Yaqoob
Additional contact information
Hafiz Muhammad Abubakar Siddique: Federal Urdu University, Islamabad, Pakistan
Romana Ansar: Punjab Group of Colleges, Bhara Kahu Campus, Islamabad, Pakistan
Muhammad Mustasim Naeem: National College of Business Administration and Economics, Lahore, Pakistan
Sajid Yaqoob: University of Lahore, Islamabad, Pakistan

Bulletin of Business and Economics (BBE), 2017, vol. 6, issue 3, 111-116

Abstract: This study investigates the nexus between foreign direct investment and economic growth for Pakistan for 1980-2016. Using autoregressive distributed lag bounds co-integration and granger causality test. The results of ARDL bounds test shows the existence of co-integration between economic growth, FDI, trade, physical capital and human capital. The results indicate the unidirectional causality from economic growth to FDI, to physical capital and to trade. The findings also express the one-way causality from human capital to labour force and physical capital. The bidirectional causality is found between physical capital and FDI, and between physical capital and human capital. The study suggests to adopt such policies that enhance human skills to attract more FDI for economic growth.

Keywords: FDI; Economic Growth; ARDL Bounds Testing Approach; Pakistan (search for similar items in EconPapers)
JEL-codes: F21 O40 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://bbejournal.com/index.php/BBE/article/view/189/146 (application/pdf)
https://bbejournal.com/index.php/BBE/article/view/189 (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:6:y:2017:i:3:p:111-116

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 ().