Determinants of Bilateral FDI Inflows in Pakistan from Major Investing Countries: A Dynamic Panel Approach

Haider Mahmood ()

MPRA Paper from University Library of Munich, Germany

Abstract: As attracting inflow of Foreign Direct Investment (FDI) is a red-hot issue nowadays and it has become an ultimate goal of any developing country. This paper targets to inspect the effects of income, institutional quality (democracy) and trade openness on FDI inflows of Pakistan by applying dynamic PMG estimators. 24 FDI contributing countries are considered for a period of 1985-2014 for investigation. This paper finds the evidence for a positive contribution of income of both Pakistan and investing countries and trade openness in FDI inflows. Institutional quality can only attract FDI in short run.

Keywords: FDI Inflows; Income; Democracy; Trade Openness (search for similar items in EconPapers)
JEL-codes: F2 F21 (search for similar items in EconPapers)
Date: 2016-07-04
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Citations: View citations in EconPapers (16)

Published in Journal of Applied Economic Sciences 7.11(2016): pp. 1471-1476

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