FDI, External Debt and Their Impact on Economic Growth of Pakistan PDF Download
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Author: Badar abbas
Publisher:
ISBN:
Category :
Languages : en
Pages : 21
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Book Description
China-Pakistan Economic Corridor (CPEC) is an important topic of debate in the economic circles nowadays. The project is expected to result in huge investments in Pakistan, but whether it will result in uplift of its economy is uncertain keeping in view the outcome of such ventures in the past. This study investigates the impact of Foreign Direct Investment (FDI) and External Debt (ED) on the Economic Growth (EG) of Pakistan by using larger sample size that spans from 1970-2015. Besides the two explanatory variables (FDI & ED), three control variables (Repayments of External Debt, Net Official Development Assistance, and Exchange Rate) are included in the research model. The empirical analysis is conducted using Auto Regressive Distributed Lag (ARDL) model while Bounds test approach of co-integration is used to test the long run impact of these variables. The findings of this research highlights that FDI inflow in Pakistan has insignificant impact on its EG in the long run, however in the short run it has a significant and positive effect. Furthermore, no impact of ED on EG is observed in the long run, but a negative impact in the short run is noticed. This may imply that considerable attention is required to make this project a success.
Author: Badar abbas
Publisher:
ISBN:
Category :
Languages : en
Pages : 21
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Book Description
China-Pakistan Economic Corridor (CPEC) is an important topic of debate in the economic circles nowadays. The project is expected to result in huge investments in Pakistan, but whether it will result in uplift of its economy is uncertain keeping in view the outcome of such ventures in the past. This study investigates the impact of Foreign Direct Investment (FDI) and External Debt (ED) on the Economic Growth (EG) of Pakistan by using larger sample size that spans from 1970-2015. Besides the two explanatory variables (FDI & ED), three control variables (Repayments of External Debt, Net Official Development Assistance, and Exchange Rate) are included in the research model. The empirical analysis is conducted using Auto Regressive Distributed Lag (ARDL) model while Bounds test approach of co-integration is used to test the long run impact of these variables. The findings of this research highlights that FDI inflow in Pakistan has insignificant impact on its EG in the long run, however in the short run it has a significant and positive effect. Furthermore, no impact of ED on EG is observed in the long run, but a negative impact in the short run is noticed. This may imply that considerable attention is required to make this project a success.
Author: Ashfaque H. Khan
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 60
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Book Description
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.
Author: Mukhtiar Ali
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
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Book Description
This study investigates the short and long run impact of Foreign Direct Investment (FDI) on Economic Growth of Pakistan. For this purpose, time series data from 1976-2015 has been collected from State Bank of Pakistan, World Bank and Economic Survey of Pakistan. Dependent variable used as Economic Growth (Gross Domestic Product Growth Rate (GDPGR) and independent variables as FDI, Gross Domestic Educational Expenditure (GDEX), Domestic Capital (KD), Openness to Trade (OPT), External Debt (EXD) and Labour Participation Rate (LPR). For stationarity of data Augmented Dickery Fuller (ADF) test was used and Auto Regressive Distributed Lag (ARDL) model was used to check the long-term co-integration among variables. The results of the study indicate that the FDI has significant positive impact on Economic Growth of Pakistan in short run whereas; it has insignificant negative impact on long rum at 5% significant level. Furthermore, the statistical results show that economic growth has significant impact on GDEX, OPT, EXD, KD and Insignificant impact on FDI and LPR. The significant epitome of this study is the requirement of the policy restructuring and implications by the Government of Pakistan which can be drawn from the findings of this study. Government of Pakistan should take necessary measures based on the recommendations of this study to enhance FDI and attract more investments both national and international.
Author: Azam Muhammad
Publisher: LAP Lambert Academic Publishing
ISBN: 9783844319040
Category :
Languages : en
Pages : 148
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Book Description
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.
Author: Najia Saqib
Publisher:
ISBN:
Category :
Languages : en
Pages : 11
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Book Description
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.
Author: Tashif Ahmed
Publisher: GRIN Verlag
ISBN: 3346262707
Category : Business & Economics
Languages : en
Pages : 27
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Book Description
Academic Paper from the year 2019 in the subject Business economics - Investment and Finance, grade: 95.0, GC University, language: English, abstract: This empirical study was conducted to find the impact of IMF credit on the economy of Pakistan. Amid of 2018, Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. However, the studies have shown the controversial effects of IMF credit and its programs on the economies. Many critics believed that the programs of IMF exert significant effects on the economy, though this study was conducted to find the impact of IMF credit programs on the economy of Pakistan. The results depicted that the acceptance of the null hypothesis and rejection of the alternative hypothesis. Thus, the finding is that there is no impact of IMF credit programs on economic growth (GDP) of Pakistan since 1971. This proves that Pakistan can invest their borrowed loan in profitable projects to prosper the economic growth. Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. Before approving the loan the government of Pakistan must convince the IMF for less harsh conditionality against the additional fund than its quota. However, it would be a challenging task to reach IMF to demand 300% more than its quota. So, it is significant to know that whether the government is consuming that loan in fruitful projects so that enough turnover would generate from the economy to pay back the acquired loan. Unfortunately, despite of the global growth objective of IMF, around 11 major conditions imposed by IMF including: excise duty on service as well as agricultural sector, less expenditure in development programs of public sectors, currency devaluation, ceasing gas and electricity subsidy, uniformity in the rates of dollar exchange rate and interbank, ceasing of financial intervention in stock market of Pakistan, raise markup rate on bank and bank transactions, ceasing of non- development expenditure under budget of defense, non-allowance of supplementary grants to the government sectors, reduction in the non-developing expenses of ministries.
Author: Rabia Atique
Publisher:
ISBN: 9783659219429
Category :
Languages : en
Pages : 0
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Book Description
Author: Abid A. Burki
Publisher:
ISBN:
Category : Economic assistance
Languages : en
Pages : 48
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Book Description
Author: Sharafat Ali
Publisher:
ISBN:
Category :
Languages : en
Pages : 9
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Book Description
Pakistan economy has received large inflows of foreign capital, in shape of foreign debt, FDI and worker's remittances, over the years. The present study is focused on the examination of effects of these flows on economic growth in Pakistan. Johansen cointegration technique and Granger causality test has been used for the analysis for the sample period of 1972-2013. The results reveal negative impacts of these flows on economic growth of the economy in long run. Short run analysis confirmed unidirectional causality running from debt service, FDI, inflation and literacy rate to growth. Causality from domestic investment is not concluded but it run from growth to domestic investment. Bidirectional causality between remittances and growth has been found. The analysis suggests some policy recommendations such as domestic resource mobilization, building of physical infrastructure, financial development, suitable macroeconomic framework for price stability and improvement in human capital for the long run growth of the economy.
Author: M. Ali Kemal
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Book Description
