IDEAS home Printed from https://ideas.repec.org/a/dse/indecr/v42y2007i2p177-190.html
   My bibliography  Save this article

A Time Series Econometric Model of the Determinants of the Level of Inward Foreign Direct Investment into Pakistan

Author

Listed:
  • Shahid H. Malik

    (Department of Economics, Loughborough University, Loughborough, Leicestershire, UK)

  • Eric J. Pentecost

    (Department of Economics, Loughborough University, Loughborough, Leicestershire, UK)

Abstract

The flow of foreign direct investment (FDI) into developing economies has become more important at least since the 1980s, but these inflows are volatile and often dominated by a few very large, sometimes reversible transactions. A more appropriate measure of the importance of FDI in a developing economy is to examine the stock of accumulated FDI flows. This paper investigates both the economic and socio-political determinants of the level of FDI in Pakistan over the period 1973 to 2004, using a cointegration time series methodology. We find that the level of GDP is the primary determinant of FDI in Pakistan in the long run, although changes in the degree of political risk is also a significant determinant of new inflows of FDI in the short run.

Suggested Citation

  • Shahid H. Malik & Eric J. Pentecost, 2007. "A Time Series Econometric Model of the Determinants of the Level of Inward Foreign Direct Investment into Pakistan," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 42(2), pages 177-190, December.
    • Handle: RePEc:dse:indecr:v:42:y:2007:i:2:p:177-190
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sanati, Youssef, 2019. "Der Wirtschaftsstandort Iran zwischen Förderung und Sanktion: Eine ARDL-modellbasierte Analyse ausländischer Investitionen," Arbeitspapiere 186, University of Münster, Institute for Cooperatives.

    More about this item

    Keywords

    FDI; Cointegration; Political Risk;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:42:y:2007:i:2:p:177-190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pami Dua (email available below). General contact details of provider: https://edirc.repec.org/data/deudein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.