DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN

Authors

  • Muhammad Sibt e Ali
  • Dil Jan Department of Economics, Islamia Collage Peshawar.
  • Muhammad InamMakki Khan Department of Business Administration, National University of Modern Language, Islamabad
  • Muhammad Taqi M Phil Economics, School of Economics, BahauddinZakaryia University, Multan.
  • Fariullah Khan Department of Economics Gomal University D.I.Khan

Abstract

The foremost purpose of thestudy is to investigate the(FDI) foreign direct investment’s key determinants in the case of Pakistan. This study used time series data(annually)with time period 1984 to 2019. For checking the stationarity of data, study used ADF test. To investigate the data empirically, this study applied ARDL(Auto Regressive Distributed Lag) model. The finding of this study shows that market size has strong relationship with FDI and explaining major portion of variation in FDI. The second variable is trade openness; coefficient value of this variable is statistically insignificant showing that it is not affecting FDI. The coefficient of trade openness is insignificant means that it has no impact on FDI. The last variable is nominal interest rate; it is negatively related with FDI.

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Published

2021-10-20

How to Cite

Muhammad Sibt e Ali, Dil Jan, Muhammad InamMakki Khan, Muhammad Taqi, & Fariullah Khan. (2021). DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN. Meritorious Journal of Social Sciences and Management (E-ISSN# 2788-4589 | P-ISSN#2788-4570), 4(1), 38-47. Retrieved from https://journal.mgp.org.pk/index.php/mjssm/article/view/140

Issue

Vol. 4 No. 1 (2021): Meritorious Journal of Social Sciences and Management

Section

Articles