Title

The determinants of foreign direct investment in Pakistan: An empirical investigation

Author Affiliation

Qazi Masood Ahmed is Associate Professor at Institute of Business Administration (IBA), Karachi

Faculty / School

Faculty of Business Administration (FBA)

Department

Department of Economics

Was this content written or created while at IBA?

Yes

Document Type

Article

Source Publication

Pakistan Development Review

ISSN

0030-9729

Abstract

This paper empirically investigates the determinants of foreign direct investment (FDI) in Pakistan, with special emphasis on the public policy instruments that can be used to accelerate FDI-related activities. Using time series data from 1960-61 to 1999-2000, it is observed that the outcomes are more consistent with the hypotheses. The application of the Ordinary Least Squares (OLS) Technique and the Johansen-Juselius Cointegration technique suggests that FDI flows in Pakistan have a long-run relationship with well-known determining factors like market size, the cost of capital, tariff, infrastructural provisions and political stability. However, a restrictive role in the short-run dynamics is questionable and needs further inquiry for policy formulation. Highly significant co-efficients of the selected exogenous variables best fit the model for FDI determinants.

Indexing Information

HJRS - Y Category, Scopus

Publication Status

Published

Find in your library

Share

COinS