EXAMINING TAX RATES, TERRORISM, AND TRADE OPENNESS AS DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN: AN EMPIRICAL ASSESSMENT

Foreign direct investment is crucial for economic development, particularly in emerging economies. Recently, developing countries has seen a rise the rate of foreign (FDI) inflows on an annual basis. Tax holidays, allowances, exemptions, deductions, and other tax breaks are some incentives that number providing effort to attract more (FDI). The purpose this study investigate how decisions about affected by Pakistan's system. Specifically, researchers analyzed impact statutory corporation rate, real effective exchange terrorism, trade openness investment, with GDP growth serving as controlled variable. Data from time series covering years 1986 2021 used. data was compiled using World Development Indicator (WDI) Economic Survey Pakistan. Researchers used empirical methods Auto-Regressive Distributed Lag (ARDL) Error Correction Model (ECM). findings indicated low taxes encouraged long-term FDI relationships between Pakistan international investors. corporate threat terrorism all independent variables have negative significant influence investment. In addition, showed favorable achieved increase both growth. It suggested decision-makers implement measures reduce order context, government must review its formulation goals.