Impact of Investment Activities on Economic Growth of Pakistan
نویسنده
چکیده
This study investigates the impact of investment on the economic growth of Pakistan. The data used in this study were collected from the period of 1981 to 2010. Multiple regression technique is used to analyze the relationship between dependent variable (gross domestic production) and independent variables (public investment, private investment and foreign direct investment). It is concluded all independent variables have significant and positive impact on the economic growth. The granger causality test found the bi directional relationship of gross domestic production with foreign direct investment & public investment while unidirectional relationship of gross domestic production is found with private investment. It is recommended that Pakistan should make stronger efforts to attract as much FDI as possible to the foreign exchange sectors in the short term. Political stability and satisfactory law and order are likewise critical to attract FDI.
منابع مشابه
The Impact of Trade Openness on Economic Growth in Pakistan; ARDL Bounds Testing Approach to Co-integration
T he main objective of this paper was the investigation of the impact of the trade openness on economic growth in Pakistan. We have been employed both the Johensen and Autoregressive Distributed Lag (ARDL) Co-integration together with ECM Techniques for the period 1975-2016. The empirical estimated results are the sound evidence that there exists a short...
متن کاملThe impact of Government spending on economic growth in D-8 countries
The present paper examines the effect of government consumption expenditures on economic growth in D-8 countries during the period of 1988 to 2010 using the panel data method. Iran, Turkey, Indonesia, Bangladesh, Nigeria, Egypt, Pakistan and Malaysia are the countries that have been researched in this study. Fixed effect method is used for the model estimation that has been acquired from Lizard...
متن کاملARDL – Analysis of the Relationship among Exports, FDI, Current Account Deficit and Economic Growth in Pakistan
T his paper empirically examines the relationship among exports, foreign direct investment, current account deficit and economic growth in Pakistan during the period 1975-2016.We adopted the autoregressive distributed lag (ARDL) approach to co-integration together with ECM techniques to trace the long-run as well as the short-run relationships. The results demonstrate the existence o...
متن کاملThe Interactive Relationship between Economic Growth and Foreign Direct Investments (FDI): A VAR Analysis in Iran
T he impact of FDI on economic growth is neither homogeneous, nor completely clarified. Due to accumulation of capital in the host economy, FDI is expected to encourage the incorporation of new inputs and technologies in the process of production. However, the impact of FDI on economic growth is not so shaped up in empirical studies. Accordingly, while some studies remarked a positiv...
متن کاملEffect of financial development and institutional quality on the environmental degradation in developed and developing countries
Environmental pollutants have become a dreadful problem and burning issues for the present world irrespective of a country who is responsible for it. The objective of the study is to investigate impact of financial development and institutional quality on environmental degradation. The study is based on panel data for developing and developed countries over the time of 1996-2016. For the empiri...
متن کامل