Comparative analysis of the socioeconomic determinants of foreign direct investment: evidence from Pakistan.
Loading...
Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Pakistan Economic and Social Review
Abstract
Foreign direct investment has become an important element in current globalized world. It plays an important role in raising the pace of economic development particularly in developing countries by bridging saving-investment gap and bringing the latest technology from developed countries. The basic objective behind this study is to examine both economic and social determinants of foreign direct investment (FDI) in Pakistan for the period 1984–2015. The study uses cointegration and error correction techniques to examine both the long-run and short-run impact of these determinants on the flow of FDI in Pakistan. Results of the study show that both economic as well as social factors have long-run impact on the flow of FDI in Pakistan. Moreover, vector error correction model confirms the existence of short-run relationship. The results point out that social factors are more important than economic factors in attracting FDI in Pakistan.
Description
Keywords
Economics, Foreign direct investment, Socio-economic factors, Co-integration
Citation
Rehman, H. U. (2016). Comparative analysis of the socioeconomic determinants of foreign direct investment: evidence from Pakistan. Pakistan Economic and Social Review, 54(2), 255-274. (Hafeez ur Rehman (Economics /SBE), (HEC X CAT))