Economic Analysis of Foreign Direct Investment and Its Impact on Trade and Growth in Pakistan

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SUBMITTED TO THE COURSE FACILITATOR:
“SIR FARHAN MEHBOOB”
AS PER THE PARTIAL REQUIRMENT OF THE COURSE:
“ECONOMIC ANALYSIS FOR MANAGEMENT”
SUBMISSION OF RESEARCH PAPER ON TOPIC:
“ECONOMIC ANALYSIS OF FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON TRADE AND GROWTH IN PAKISTAN”
SUBMITTED BY:
“SHIRAZ KHAN”
(6001)

TOPIC
Economic Analysis of Foreign Direct Investment and its Impact on Trade and Growth in Pakistan
AUTHOR
Shiraz Khan
Business Graduate, Iqra University,
Karachi, Pakistan.

ABSTRACT
Foreign direct investment (FDI) in context of Pakistan is one of the major contributors that help Pakistan to minimize the gap of financial resources and funds. FDI has played a significant and vital role in the domestic markets of
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Research has shown that FDI contributes significantly in the economy of developed countries but it is contrasting in the case of Pakistan.
Yousaf (2008) Analyses of more than 3 decades reveal that FDI has positive relation with imports in short & long-run where as relationship with exports is negative in short & positive in the long-run. FDI is an economic influencer of economy of a country specially developing countries experience accelerated GDP when successful in attracting FDI as in case of Pakistan.
Ahmad (2003) FDI not only contributes towards the economic betterment of the host nation but it also provides technological advancements and increased productivity. Investment in Pakistan is not outward-oriented but study suggests that her economic prosperity depends upon the inflow of FDI that can contribute towards the export-oriented strategy.
Dar (2004) Economy of the developing countries like Pakistan is volatile and depends upon many other influencers that include political & social environments in the country. FDI inflows to Pakistan depend upon the socio-political environment and study suggests a long relationship of FDI inflows in Pakistan with the socio-political influencers and the macro-economic factors.
Aqeel (2004) FDI inflows to Pakistan have increased over time and are subjected to have a favorable effect on
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