The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

Ahmad, Najid; Hayat, Muhammad Farhat; Luqman, Muhammad; Ullah, Shafqat

doi:10.12955/ejbe.v6i0.137

Cited by 22 publications

(20 citation statements)

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“…specified by Ahmad and Hamdani (2003); Erum et al (2016). Its coefficient positive due to one percent increase in government expenditure and GDP growth only 0.03 percent.…”

Section: Hausman Testmentioning

confidence: 97%

Investment and Economic Growth: A Panel Data Analysis

Riaz

2018

Asian Development Policy Review

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Article HistoryInvestment plays a vital part in economic progress of the countries. The current study tried to examine the influence of the investment on economic development of South Asian Association of Regional Cooperation (SAARC) countries by used the panel data for the dated 2000-2014. This study applied Hausman test to check the fixed effect model is appropriate or random effect model is appropriate. The empirical results explained that the random effect model is suitable in this study. Random effect model has been examined the influence of investment, government expenditure and inflation on economic evolution of SAARC countries. The study also explained that the investment, government expenditure are positive impact on economic progress. The outcome of inflation is negligible on economic evolution. Contribution/ Originality:This study contributed that investment plays an imperative character in the progression of economic development, by means of a panel data set of SAARC countries. This study empirical result explained that the investment is positive effect the economic growth because the investment rise and the economic evolution also increase. The outcome of government expenditure is positive and significant on economic development. These are durable reason for preserving the public sector. The outcome of inflation is negative and insignificant on economic evolution. In these countries the inflation are negative impact on economic progress because inflation cannot precedes the economic growing.

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“…specified by Ahmad and Hamdani (2003); Erum et al (2016). Its coefficient positive due to one percent increase in government expenditure and GDP growth only 0.03 percent.…”

Section: Hausman Testmentioning

confidence: 97%

Investment and Economic Growth: A Panel Data Analysis

Riaz

2018

Asian Development Policy Review

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“…The growth in imports and exports has led to an increase in trade flows, but the higher growth in imports than in exports has contributed to an imbalance in trade and has contributed to the deficit successively. Although during this period the economy has shown some economic growth benefits from foreign investment and remittances (Ahmad, Hayat, Luqman & Ullah, 2012;Khan & Jehan, 2015), depreciation of the rupee, trade liberalization and the rising external debt have left the economy extremely helpless to external shocks.…”

Section: Introductionmentioning

confidence: 99%

Import Demand Income Elasticity and Growth Rate in Pakistan

Khan

Azam

Emirullah

2016

Foreign Trade Review

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This article applies the import demand function and constrained growth model in case of Pakistan and investigates for the impact of trade liberalization using data for the period of 1981-2010. The autoregressive distributed lag method and rolling regression analysis are employed to estimate import demand income elasticity. In results, the imports are found to be highly sensitive to the changes in income level. In addition, a trend of gradual increase in income elasticity of imports has been found since the aftermath of trade liberalization. However, no evidence has been found that indicates that the growth rate is increased as a consequence of liberalization. The liberalization has not increased export growth in association with the rising growth in import demand income elasticity. Thus, it is concluded that liberalization has increased the external constraint over economic growth. JEL: F13, F14, F43, O53

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“…The study confirms the uni-directional link from FDI to GDP growth of the country. Ahmad et al (2012) have found a positive relationship between FDI and economic growth of Pakistan. FDI can contribute to its economic growth both in short-run and long-run.…”

Section: Literature Reviewmentioning

confidence: 97%

Globalisation and Economic Growth in India: An ARDL Approach

Wani

Mir

2021

The Indian Economic Journal

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This study aims to investigate the relation between globalisation, which includes foreign direct investment (FDI), exports, imports, foreign remittances and economic growth in India. To achieve the said objective, Autoregressive Distributed Lag bounds testing approach has been utilised. The study indicates that imports and FDI positively affect economic growth in India. On the other hand, exports and foreign remittances have negative and significant relationship with economic growth. This suggests that exports and foreign remittances take more time to spillover positive impact on economic performance of India. The findings suggest that FDI should be encouraged to promote exports, export-led growth and joint ventures with foreign investors in the country. JEL Codes: F30, F10, F10, F24, C22

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The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

Cited by 22 publications

References 1 publication

Investment and Economic Growth: A Panel Data Analysis

Investment and Economic Growth: A Panel Data Analysis

Import Demand Income Elasticity and Growth Rate in Pakistan

Globalisation and Economic Growth in India: An ARDL Approach

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