The Impact of Exchange Rate, Interest Rate and Economic Misery on Foreign Direct Investment: Empirics from Pakistan
Muhammad Zahid Naeem
Additional contact information
Muhammad Zahid Naeem: Assistant Professor, Department of Economics, University of The Punjab, Pakistan
Journal of Policy Research (JPR), 2021, vol. 7, issue 1, 36-43
This study investigates the impact of economic misery, exchange rate and interest rate on foreign direct investment (FDI) in case of Pakistan over the period of 1972- 2019. The time series data for all variables is collected from various issues of Economic Surveys of Pakistan, State bank of Pakistan and WDI. This study has used Augmented Dickey-Fuller (ADF) and Philips Perron (PP) unit root tests for stationarity of the variables and Autoregressive Distributive Lag (ARDL) is used for co-integration among the variables of the model. The results show that there is negative and insignificant impact of economic misery and political instability on foreign direct investment in Pakistan. Exchange rate has positive and significant relationship with foreign direct investment over the selected time period. Exports have a negative and insignificant impact of foreign direct investment. Interest rate and GDP has a positive and significant relationship with foreign direct investment in case of Pakistan.
Keywords: Exchange Rate; Interest Rate and Foreign Direct Investment (search for similar items in EconPapers)
JEL-codes: E40 F30 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rfh:jprjor:v:7:y:2021:i:1:p:36-43
Access Statistics for this article
Journal of Policy Research (JPR) is currently edited by Dr. Muhammad Irfan Chani
More articles in Journal of Policy Research (JPR) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().