Financial Risk and Foreign Direct Investment: Evidence from Pakistan Economy
Muhammad Ali,
Asfand Yar Khattak Asfand,
Bakhtiyar Khan Bakhtiyar and
Raja Hammad Amhed Hammad
MPRA Paper from University Library of Munich, Germany
Abstract:
The purpose of this paper is to inspect whether Financial risk influence FDI in Pakistan economy. In order to achieve the study objective and to answer the question, the Unit root test, Co integration test, OLS methodology and Granger causality test has been used. Time series data for the year 1982 to 2011 is used and this study measures the financial risk by considering foreign debt services, exchange rate, foreign debt and current account. The study results signify that efficient use of foreign debt can attract more foreign direct investment in the country. The paper shows that financial risk has significant impact on foreign direct investment.
Keywords: Foreign direct investment; foreign debt; exchange rate; current account; financial risk. (search for similar items in EconPapers)
JEL-codes: G01 G38 (search for similar items in EconPapers)
Date: 2014-12-07, Revised 2014-12-12
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Published in International Journal of Business Management and Economic Studies 1.1(2014): pp. 52-68
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/60779/1/MPRA_paper_60779.pdf original version (application/pdf)
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:pra:mprapa:60779
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().