Do Uncertainty and Financial Development Influence the FDI Inflow of a Developing Nation? A Time Series ARDL Approach

The study focuses on investigating the long-term and short-term effect of uncertainty, financial development FDI inflow Pakistan during period 2001–2019. To achieve objective this study, we obtained data from World Development Indicators (WDI) European policy uncertainty index’s websites. dependent variable was inflow. Experimental variables are development. stationarity testing revealed that Economic Policy Uncertainty (EUP) have weak significance FD has no significance. However, by taking first difference, all become highly significant. Similarly, it is further indicated optimal lag level four. Additionally, bound test confirmed a relationship (co-integration) existed between study. ARDL estimations conclude long-run as well short-run effects for plays strong part in decreasing inflow, whereas enhancing