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Impact of foreign financial inflows on economic growth of Pakistan

Shahid Javaid

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the causal relationship between foreign financial inflows and economic growth for Pakistan using annual data from 1981 to 2009. The paper uses time series econometrics tools to investigate the relationship between foreign financial inflows, real exchange rate, trade openness, government expenditure and economic growth. The study found positive relation between foreign financial inflows and economic growth for Pakistan. The causal relation is unidirectional from growth to financial inflows.

Keywords: Remittances; Foreign Direct Investment; Economic Growth and Time-Series Models (search for similar items in EconPapers)
JEL-codes: C22 F24 F43 (search for similar items in EconPapers)
Date: 2012, Revised 2013
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