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Impact of foreign financial inflows on economic growth of Pakistan

Author

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  • Javaid, Shahid Hussain

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.

Suggested Citation

  • Javaid, Shahid Hussain, 2012. "Impact of foreign financial inflows on economic growth of Pakistan," MPRA Paper 117505, University Library of Munich, Germany, revised 2013.
    • Handle: RePEc:pra:mprapa:117505
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    File URL: https://mpra.ub.uni-muenchen.de/117505/1/Foreign%20financial%20inflows.pdf
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    References listed on IDEAS

    as
    1. Jai Sheen Mah, 2010. "Foreign Direct Investment Inflows and Economic Growth: The Case of Korea," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 726-735, November.
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    More about this item

    Keywords

    Remittances; Foreign Direct Investment; Economic Growth and Time-Series Models;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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