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An analysis of linkage between foreign direct investment and GDP per Capita in Pakistan: A time series analysis
Dalarna University, School of Technology and Business Studies, Economics.
2014 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This study aims to investigate the relation between foreign direct investment (FDI) and per capita gross domestic product (GDP) in Pakistan. The study is based on a basic Cobb-Douglas production function. Population over age 15 to 64 is used as a proxy for labor in the investigation. The other variables used are gross capital formation, technological gap and a dummy variable measuring among other things political stability. We find positive correlation between GDP per capita in Pakistan and two variables, FDI and population over age 15 to 64. The GDP gap (gap between GDP of USA and GDP of Pakistan) is negatively correlated with GDP per capita as expected. Political instability, economic crisis, wars and polarization in the society have no significant impact on GDP per capita in the long run.

Place, publisher, year, edition, pages
2014. , 31 p.
Keyword [en]
GDP Per capita, FDI, Gross capital formation, GDP gap, Time series and Pakistan.
National Category
URN: urn:nbn:se:du-13865OAI: diva2:703232
Available from: 2014-03-11 Created: 2014-03-05 Last updated: 2015-10-12Bibliographically approved

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