An Empirical Analysis of Foreign Direct Investment in Pakistan

An Empirical Analysis of Foreign Direct Investment in Pakistan

Author: Minhas Akbar

Publisher:

Published: 2015

Total Pages: 11

ISBN-13:

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The aim of this paper is to explore the trends in Foreign Direct Investment (FDI) inflows in Pakistan and to identify the key determinants of FDI for the period of 2000-2013. The country experienced a continuous surge in FDI inflows from 2000-2008. On the contrary, the phase of 2009-2013 has been characterized by a persistent decline in FDI in Pakistan. This slump is mainly attributed to political and economic instability as wells as poor law and order situation in the country. Keeping these periods with differing results in perspective, multiple regression analysis is employed to empirically analyze the key determinants that are expected to explain variation in FDI in Pakistan. The selected variables were found significant determinants of FDI in Pakistan. Gross Domestic Product (GDP), degree of trade openness and regime of dictatorship have a significant positive effect on FDI. While, terrorism attacks foreign debt, exchange rate, political instability, and domestic capital formation are negatively significant determinants of FDI inflows in Pakistan. Considering the dynamic changes in the broad macro factors in economy, this study provides a fresh perspective on the factors that determine FDI in Pakistan. Moreover, the study findings provide important insights to policy makers to design policy measures that enhance FDI inflows in Pakistan.


Foreign Direct Investment in Pakistan

Foreign Direct Investment in Pakistan

Author: Ashfaque H. Khan

Publisher:

Published: 1999

Total Pages: 60

ISBN-13:

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Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. It is crucial to accord high priority to foreign direct investment (FDI). Sections of this report include: importance of FDI in Pakistan; review of FDI policy; trends, issues, FDI, and economic impact of FDI; concentrated FDI in the power sector and its balance of payments implications; and conclusions, lessons, and policy challenges. Charts and tables.


Determinants of Inflow of Foreign Direct Investment (FDI) Into Pakistan

Determinants of Inflow of Foreign Direct Investment (FDI) Into Pakistan

Author: Tehseen Ahmed

Publisher:

Published: 2014

Total Pages: 11

ISBN-13:

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The objective of this research paper is to examine the effects of various factors like violence, stock exchange performance and exchange rate on Foreign Direct Investment (FDI) inflow into Pakistan. For econometric analysis monthly secondary data ranging from 2003 to 2011 has been used. Regression and correlation are used as analytical tools for the empirical estimation. In addition, for time series data analysis Augmented Dickey Fuller test and Phillips-Perron test have been used. This study finds that the violence in the country and Karachi Stock Exchange- 100 Index are statistically significant factors with a positive sign. Moreover, the exchange rate has also been found to be statistically significant factor with negative sign. This study uses monthly time series data from 2003-2001, which enables a deeper understanding of FDI inflow in Pakistan. Results suggest that in order to enhance FDI inflow to a desirable level, the government should ensure the existence of a peaceful environment, efficient capital markets and a stable exchange rate in the country.


Determinants of Foreign Direct Investment

Determinants of Foreign Direct Investment

Author: Zeshan Anwar

Publisher: LAP Lambert Academic Publishing

Published: 2013

Total Pages: 96

ISBN-13: 9783659428067

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Pakistan is an agricultural based economy, therefore, agricultural sector is one of the most important sectors of Pakistan as it provides employment opportunities to millions of people, contributes significantly in GDP, fulfills local demand for food items, export variety of commodities to foreign countries, boosts foreign exchange reserves and eventually enhances economic growth rate of Pakistan's economy. This book has investigated the determinants of FDI in agricultural sector of Pakistan. There are very few studies which have investigated the determinants of FDI in agricultural sector of Pakistan, therefore, the main objective of this book is to determine the relationship of important factors which are expected to influence inflows of foreign direct investment in agricultural sector of Pakistan. The analysis will be very helpful for the policy makers and researchers to understand and adjust their policies to attract higher FDI inflows in their countries in general and in agricultural sectors of their countries in particular.


Trade And Investment In South Asia: An Analysis

Trade And Investment In South Asia: An Analysis

Author: Choudhury Rahul Nath

Publisher: World Scientific

Published: 2019-09-26

Total Pages: 200

ISBN-13: 9811206589

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Foreign Direct Investment (FDI) flows started gaining traction in South Asia from the late 20th century onwards, when nations from the South Asian Association for Regional Cooperation (SAARC) began moving away from highly controlled regimes and adopting liberal and open economic policies.In the context of surplus labour and capital scarcity faced by South Asian countries such as India, Pakistan, Bangladesh and Sri Lanka, to varying degrees, the economic reform process has provided an opportunity to actively promote inward FDI flows, with the goal of providing the much-needed capital for the growth of this region. Several policy initiatives were undertaken to attract FDI and incentives were announced to fascinate investors, resulting in the inflow of FDI across the region.This book examines FDI inflows in SAARC nations in the light of regional policy changes in the 21st century. It investigates the relationship between trade and FDI in the region, and also provides insights into the ease of doing business in the SAARC region.


Foreign Direct Investment in South Asia

Foreign Direct Investment in South Asia

Author: Pravakar Sahoo

Publisher: Springer Science & Business Media

Published: 2013-10-01

Total Pages: 378

ISBN-13: 8132215362

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During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.


The Impact of Political Instability and Nominal Interest Rate on Foreign Direct Investment. The Case of Pakistan

The Impact of Political Instability and Nominal Interest Rate on Foreign Direct Investment. The Case of Pakistan

Author: Asif Hussain

Publisher: GRIN Verlag

Published: 2021-10-18

Total Pages: 25

ISBN-13: 3346516024

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Essay from the year 2021 in the subject Economics - Case Scenarios, grade: 14, , language: English, abstract: This paper will focus on the impact of domestic interest rate and political instability on FDI of Pakistan using time series data from 1989-2019 in case of Pakistan. The findings are that political instability has a major impact for short time period and in long time period but in case of interest rate there is a negative minimal impact on FDI in both span of time. This can be because when you have lower nominal interest rate, thenyour domestic investor will benefit and country GDP will rise.


Attracting Foreign Direct Investment in Pakistan

Attracting Foreign Direct Investment in Pakistan

Author: Sakina Lavingia

Publisher:

Published: 2016

Total Pages: 97

ISBN-13:

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Private sector investment has become one of the most essential sources of international capital flows to developing countries. Foreign Direct Investment (FDI) as one type of private sector investment has the potential to drive economic growth and development. Understanding the factors that motivate or deter foreign investors from investing in a developing country therefore is crucial. This thesis examines the particular case of Pakistan and analyzes internal and external factors that have affected the inclines and declines in inflows of FDI to the country between 2000 and 2014. By performing a comparative sectoral analysis, this thesis examines the effects of government efficacy, national security, and global levels of FDI inflows on FDI inflows on three distinct sectors in Pakistan: Energy, Telecommunications, and Financial Services. The thesis argues that a rapidly deteriorating domestic situation post-2008 due to weakened governance and limited security provision within the country has increased the perceived levels of risk and uncertainty associated with investing in Pakistan. This has resulted in a sharp decline in FDI inflows to the country.


Impact of Foreign Direct Investment, Imports, Exports of Goods and Services on Economic Growth of Pakistan

Impact of Foreign Direct Investment, Imports, Exports of Goods and Services on Economic Growth of Pakistan

Author: Ahmed Imran Hunjra

Publisher:

Published: 2018

Total Pages: 11

ISBN-13:

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The economic growth of any country plays a significant role in the progress of the country. The role of the foreign direct investment is very significant towards the progression of the economy of Pakistan. This study examines the impact of imports, exports, and foreign direct investment on GDP of Pakistan. Data was obtained from site of State Bank of Pakistan, Federal Bureau of Statistics, and International Financial Statistics for last 23 years. E-views was used for data analysis. The results clearly show that the success for the increase in the GDP or economic growth these three factors, which are FDI, imports and exports, plays significant role.