Impact of FDI on Economic Growth: Evidence from Pakistan
Hafiz Muhammad Abubakar Siddique, Romana Ansar, Muhammad Mustasim Naeem, Sajid Yaqoob
Siddique, H. M. A Ansar, R. Naeem, M.M. and Yaqoob, S. (2017). Impact of FDI on Economic Growth: Evidence from Pakistan. Bulletin of Business and Economics, 6(3), 111-116.
This study investigates the nexus between foreign direct investment and economic growth for Pakistan for 1980-2016. Using autoregressive distributed lag bounds co-integration and granger causality test. The results of ARDL bounds test shows the existence of co-integration between economic growth, FDI, trade, physical capital and human capital. The results indicate the unidirectional causality from economic growth to FDI, to physical capital and to trade. The findings also express the one-way causality from human capital to labour force and physical capital. The bidirectional causality is found between physical capital and FDI, and between physical capital and human capital. The study suggests to adopt such policies that enhance human skills to attract more FDI for economic growth.
FDI, Economic Growth, ARDL Bounds Testing Approach, Pakistan
Research Foundation for Humanity (RFH)
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