Economics, Econometrics and Finance
6 years ago

Foreign investment boosts Pakistan exports, creating jobs and economic growth!

IBT Journal of Business Studies
FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH
Abdur Rahman Aleemi

Paper Summary

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Foreign Direct Investment (FDI) positively impacts exports in Pakistan, along with Consumer Price Index (CPI), but is negatively affected by interest rates. A long-term relationship exists between FDI, exports, CPI, interest rates, and GDP growth rate. There is bidirectional causality between CPI and interest rates, exports and interest rates, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI, and exports to GDP growth rate.