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.

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.

Foreign Direct Investment, Democracy, Dictatorship and Pakistan
Foreign Direct Investment, Democracy, Dictatorship and Pakistan

Author: Hafiz Muhammad Arslan

Publisher: LAP Lambert Academic Publishing

Published: 2012

Total Pages: 116

ISBN-13: 9783659169588

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In economic history of Pakistan, dictators have made good policies with regard to FDI and huge amount of FDI came into Pakistan in their regime. The credit also goes to the political stability and good macro indicators of economy in their era as compared to democratic governments, but every time dictator's period ended with huge political and economic crisis and destruction of national institutions. This book is a complete package of political and statistical analysis of policies, trends and importance of FDI in Pakistan from independence (1947) to 2009, based on quantitative and qualitative facts and figures. Moreover reasons of low FDI in Pakistan and their solutions are also discussed in detail. That's why very helpful for students of economics and finance, politicians, bureaucrats and for all those persons who have interest in Pakistani economics, role of politics and bureaucracy in economic matters and history of foreign investment policies of governments in different regimes after independence.

Determinants of Private Investment in Pakistan
Determinants of Private Investment in Pakistan

Author: Mr.Khaled Sakr

Publisher: International Monetary Fund

Published: 1993-03

Total Pages: 40

ISBN-13:

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This paper investigates the determinants of private investment in Pakistan with special emphasis on the impact of government investment. Using annual data for the period 1973/74-1991/92, it is estimated that private investment was positively correlated to GDP growth, to credit extended to the private sector, and to government investment. When government investment is disaggregated into Its infrastructural and noninfrastructural components, the latter is found to be negatively correlated with private investment.

Impact of Foreign Direct Investment on Economic Growth of Pakistan
Impact of Foreign Direct Investment on Economic Growth of Pakistan

Author: Najia Saqib

Publisher:

Published: 2013

Total Pages: 11

ISBN-13:

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Given contrasting evidence in the literature pertaining to the impact of Foreign Direct Investment on the host country's economy, we take the case of Pakistan and test the said association for this nation. The data used for this study has spanned over the period of 1981 till 2010. Besides FDI, four other variables including Debt, Trade, Inflation and Domestic Investment have been included in the study, to regress upon GDP of this country. The methodology to test the impact of these variables on Pakistan's economy has been limited to the least squares method. The co-integration of the variables has been ascertained through application of Augmented Dickey Fuller Test and is found to hold in the long run. Our findings indicate that Pakistan's economic performance is negatively affected by foreign investment while its domestic investment has benefitted its economy. Moreover, the nation's debt, trade and inflation have found to have negative impact on its GDP.

Foreign Direct Investment and Economic Growth
Foreign Direct Investment and Economic Growth

Author: Azam Muhammad

Publisher: LAP Lambert Academic Publishing

Published: 2011-04

Total Pages: 148

ISBN-13: 9783844319040

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Objectives of this research study were to know about the influence of various economic, social and political determinants of host country in enhancing FDI.Further, an attempt has been made to exploring the impacts of domestic investment, FDI, human capital and trade openness on economic growth.For analysis secondary data have been utilized over the time period from 1971 to 2005.Regression models have been used and the methods of Least Square, TSLS, and Generalized Method of Moment have been applied as analytical techniques for the empirical estimation. It has been argued that foreign capital inflow particularly in the form of FDI is likely to encourage national economic development in a host country by playing supportive role to local investment and by bringing many other benefits. Pakistan is a developing country and characterized by low per capita income, burden of external debt, lack of capital, low saving rate, rapid growth of population, and deficit in balance of payment etc. Domestic resources are short to finance the development needs of the country, therefore, FDI is one of the important sources of external finance for the economic growth and development of Pakistan.

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.