Impact of Foreign Investment on the Economic Growth of Pakistan Rabia Najaf Khakan Najaf University of Lahore, Lahore, Pakistan Abstract The purpose of this research paper is to analyse the impact of foreign direct investment on economic growth of Pakistan. The data take for this research is from 1980 to 2013.There variables were INF, FDI and GDP .GDP is dependent variable and FDI and INF is independent variable.
Regression and correlation technique is a statistical tool which is used to tell the relation and impact of dependent on independent variables. The Finding of this research shows that there is positive relation between GDP and FDI .There is negative relationship between GDP and INF.
The research indicates that FDI increase the economic growth of county. Policy maker should make such policy which assault FDI in Pakistan. Keywords: Gross Domestic Product, Inflation and Foreign Direct Investment: Introduction: Foreign Direct investment has on the most famous source of getting investment from other countries.
The use of this reserve has major aspects of construction assets in developing countries. The role of foreign direct investment has been consider widely as a growth enhancing factor in the developing Khan ( 2007) countries. FDI is measured as major structure of manufacture in scene of technological progress, unemployment reduction, talent improvement, market competition and great outflow of exports.
The possible compensation of FDI is its use the local raw material; introduce the technique of administration and advertising. Simplicity the right to use of new technology. The biggest advantages of FDI are to do not pay off principal and interest amount. History tells us that FDI in Pakistan is more in dictatorship as compare to civilian Governments. This is because Foreign has more trust on dictatorship as compare to civilian Government. The Previous done studies on this topic “Impact of Foreign Direct Investment on Pakistan economy” .
For example Farkas (2012) result show that there is positive relationship between Foreign Direct Investment on Pakistan economy. Hameed and Bashir (2012) show us that FDI lead toward economic growth In this research I want to study the impact of FDI on economic growth of Pakistan from1980 to 2013. For this research my variables were foreign direct investment, Inflation and Gross domestic product .The other part of this research paper is planned as follow. Literature view is mention at section 2, methodology is in section 3 and 4 section tells us about Data analysis and empirical result is given and section 6 include conclusion. The boarder area of this study is to investigate the GDP and other factors of economy which affect Foreign Direct Investment? Problem Statement: The Problem statement of this research is to check the impact GDP on FDI and INF. Objective of Study: FDI relation with economic variables is given below.
To study the Relation between GDP and FDI. To study the Relation between GDP and Inflation. Significance of Study: FDI is one of the most famous forms of investment in the world and it show positive significant on economy of Pakistan.GDP show the overall condition of particular country. This research also provide clear picture for optional investor and Government official to improve their policies against FDI. Limitation of study: This study is limited to three variables.
Two of them are dependent (FDI and INF) and one of the is independent (GDP) LITERATURE REVIEW: This is one of the hottest topics for Researcher to study. Many researchers have examined the relation between FDI economical growths. Accounting model Frame work is used by many researchers to analysing the effect of FDI on national economy.
The review of previous literature in the field of FDI and economic growth is given