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Revisiting the Nexus between Economic Policy Uncertainty, Financial Development, and FDI Inflows in Pakistan during Covid-19: Does Clean Energy Matter?

Author

Listed:
  • Ayesha Serfraz

    (Assistant Professor, Institute of Administrative Sciences, University of the Punjab, Lahore, Pakistan,)

  • Md. Qamruzzaman

    (School of Business and Economics, United International University, Bangladesh,)

  • Salma Karim

    (School of Business and Economics, United International University, Dhaka, Bangladesh.)

Abstract

The significance of FDI for economic progress has been well established, especially for developing nations; conversely, the critical role of macro determinants has also been explained in attracting FDI. the motivation of the study is to assess the impact of economic policy uncertainty, financial development and clean energy on FDI in Pakistan economy. the study employed several econometric tools in assessing and documenting the elasticities of EPU, FD and CE in the process of amplifying the inflows of FDI in Pakistan. According to the study findings, it is apparent that financial development and clean energy positively affect FDI, while the effects of EPU are established as adversely connected to FDI. Study findings suggest, in Pakistan, for attracting and targeting the continual inflows of FDI, it is imperative to offer economic sustainability and efficient financial intermediation.

Suggested Citation

  • Ayesha Serfraz & Md. Qamruzzaman & Salma Karim, 2023. "Revisiting the Nexus between Economic Policy Uncertainty, Financial Development, and FDI Inflows in Pakistan during Covid-19: Does Clean Energy Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 91-101, July.
    • Handle: RePEc:eco:journ2:2023-04-11
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    Cited by:

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    2. Piana Monsur Mindia & Md Qamruzzaman & Nusrat Farzana, 2024. "Exploring the Impact of Good Governance and Innovation on Export Earnings, Clean Energy, Remittances, and Zero Carbon Emissions in Sub-Saharan African Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 265-284, July.
    3. Memoona Manzoor Kiani & Shain Taj Raisani & Dr. Muhammad Nabeel & Shahan Zeb Khan & Kashif Lodhi, 2023. "Impact of International Trade and Globalization on Financial Markets: A Case of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 493-500.
    4. Md. Qamruzzaman, 2024. "Clarifying the Nexus between Trade Policy Uncertainty, Economic Policy Uncertainty, FDI and Renewable Energy Demand," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 367-382, March.
    5. Han Yan & Md. Qamruzzaman & Sylvia Kor, 2023. "Nexus between Green Investment, Fiscal Policy, Environmental Tax, Energy Price, Natural Resources, and Clean Energy—A Step towards Sustainable Development by Fostering Clean Energy Inclusion," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    6. Nusrat Farzana & Md Qamruzzaman & Yeasmin Islam & Piana Monsur Mindia, 2023. "Nexus between Personal Remittances, Financial Deepening, Urbanization, and Renewable Energy Consumption in Selected Southeast Asian Countries: Evidence from Linear and Nonlinear Assessment," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 270-287, November.

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    More about this item

    Keywords

    Financial development; EEconomic Policy uncertainty; Clean Energy; FDI; ARDL;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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