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Impact Of Foreign Direct Investment On Economic Growth: A Case Study Of Pakistan

Author

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  • Amna Muhammad Gudaro

    (Ecnomics, Civil Aviation College, Karachi)

  • Imran Umer Chhapra

    (KASB Institute of Technology KASBIT Karachi)

  • Salman Ahmed Sheikh

    (Ecnomics Department IBA Karachi)

Abstract

Purpose This research paper aims to analyze the impact of foreign direct investment FDI in Pakistan for the period 1981 to 2010.It evaluated the GDP growth performance and assessed the historical trends of the FDI and CPI in Pakistan. Methodology/Sample The link between gross domestic product GDP, foreign direct investment and Inflation is measured with the help of multiple regression models.GDP in this model is used as dependent variable whereas FDI and inflation CPI are measured as independent variables. Findings According to the results, the model is overall significant with the positive and significant association of GDP and FDI while a negative and significant relationship found between GDP and inflation. Practical ImplicationsOn the basis of the empirical results acquired, Policy proposals are advised to attract FDI in Pakistan.Foreign direct investment FDI is an essential factor for economic growth in the developing countries.FDI allows the transfer of technology, uplift competition in the domestic input market, contributes to human capital development and Profits

Suggested Citation

  • Amna Muhammad Gudaro & Imran Umer Chhapra & Salman Ahmed Sheikh, 2012. "Impact Of Foreign Direct Investment On Economic Growth: A Case Study Of Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 8(2), pages 22-30.
    • Handle: RePEc:aib:ibtjbs:v:8:y:2012:i:2:p:22-30
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2012.82.0
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    References listed on IDEAS

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    1. By Mohsin S. Khan & Abdelhak S. Senhadji, 2001. "Threshold Effects in the Relationship Between Inflation and Growth," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-1.
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    5. Adam, Anokye M. & Tweneboah, George, 2008. "Foreign Direct Investment and Stock market Development: Ghana’s Evidence," MPRA Paper 11985, University Library of Munich, Germany, revised 2008.
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    Cited by:

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    2. Uddin, Moshfique & Chowdhury, Anup & Zafar, Sheeba & Shafique, Sujana & Liu, Jia, 2019. "Institutional determinants of inward FDI: Evidence from Pakistan," International Business Review, Elsevier, vol. 28(2), pages 344-358.
    3. Shuibin Gu & Gigamon Joseph Prah, 2020. "The Effect of International Financial Reporting Standards on the Association between Foreign Direct Investment and Economic Growth: Evidence from Selected Countries in Africa," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(1), pages 21-29.
    4. Nilofer, Nilofer & Qayyum, Abdul, 2018. "Impact of Foreign Direct Investment on Growth in Pakistan: The ARDL Approach," MPRA Paper 86961, University Library of Munich, Germany, revised 2018.
    5. Oyegoke, Ebunoluwa O. & Aras, Osman Nuri, 2021. "Impact of Foreign Direct Investment on Economic Growth in Nigeria," MPRA Paper 108348, University Library of Munich, Germany.

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    Keywords

    GDP; FDI; CPI;
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