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Impact of Foreign Direct Investment On Economic Growth of Pakistan-An ARDL-ECM Approach
Södertörn University, School of Social Sciences.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This study investigates an impact of Foreign Direct Investment (FDI) on Gross Domestic Production (GDP) of Pakistan over the period 1966-2014. I apply Autoregressive Distributed Lag- Error Correction Model (ARDL-ECM) technique to find long run effects and short run effects simultaneously. The FDI has a significant positive impact on the GDP growth of Pakistan both in long-term and in short-term. Moreover, the ECM coefficient suggests a convergence to the equilibrium path. Other factors such as the inflation and the population also show significant effects on the GDP in the long run. Finally, the gross capital formation and the trade have no significant role to explain the variation in the economic growth of Pakistan.

Place, publisher, year, edition, pages
2016. , 48 p.
Keyword [en]
GDP, FDI, growth, Pakistan, ARDL
National Category
URN: urn:nbn:se:sh:diva-30524OAI: diva2:944306
Subject / course
Social and Behavioural Science, Law
Available from: 2016-06-29 Created: 2016-06-29 Last updated: 2016-06-29Bibliographically approved

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