2018

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Browsing 2018 by Author "Iqra Faiz"

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    Impact of Terrorism, Political Stability and Green House Gasses on FDI inflows in Pakistan
    (UMT, Lahore, 2018) Iqra Faiz
    Foreign Direct Investment demonstrated to be a major source of investment for developing countries which helps to fulfill saving-investment gap, generating employment opportunities, transfer of technology, and eventually rising of economic growth of the host countries. This study analyzes the theoretical determinants of FDI for Pakistan. This research is undertaken to study the impact of terrorism, green house gasses and political stability including interest rate or real exchange rate, trade openness on FDI inflow in Pakistan from 1981 to 2015. To examine the relation among these variables in the long run and short run. ARDL co-integration approach is utilized to identify the main theoretical determinants of FDI in Pakistan by using time series analysis. It is concluded from the econometric analysis that terrorism has a negative impact on FDI while trade openness, green house gasses, political stability, interest rate and real exchange rate have a positive impact on FDI. Secondly this study examines the asymmetric effect of terrorism events on the investor confidence using the Asymmetric Effects NARDL model. The result shows that both effects of increasing terrorism and effects of decreasing of terrorism are significant and their coefficient is different this shows that there is asymmetry. So the government must take steps to promote such peaceful environment policies for attracting FDI