Download or read book FDI External Debt and Their Impact on Economic Growth of Pakistan written by Badar abbas and published by . This book was released on 2019 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: China-Pakistan Economic Corridor (CPEC) is an important topic of debate in the economic circles nowadays. The project is expected to result in huge investments in Pakistan, but whether it will result in uplift of its economy is uncertain keeping in view the outcome of such ventures in the past. This study investigates the impact of Foreign Direct Investment (FDI) and External Debt (ED) on the Economic Growth (EG) of Pakistan by using larger sample size that spans from 1970-2015. Besides the two explanatory variables (FDI & ED), three control variables (Repayments of External Debt, Net Official Development Assistance, and Exchange Rate) are included in the research model. The empirical analysis is conducted using Auto Regressive Distributed Lag (ARDL) model while Bounds test approach of co-integration is used to test the long run impact of these variables. The findings of this research highlights that FDI inflow in Pakistan has insignificant impact on its EG in the long run, however in the short run it has a significant and positive effect. Furthermore, no impact of ED on EG is observed in the long run, but a negative impact in the short run is noticed. This may imply that considerable attention is required to make this project a success.
Download or read book Foreign Direct Investment in Pakistan written by Ashfaque H. Khan and published by . This book was released on 1999 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. It is crucial to accord high priority to foreign direct investment (FDI). Sections of this report include: importance of FDI in Pakistan; review of FDI policy; trends, issues, FDI, and economic impact of FDI; concentrated FDI in the power sector and its balance of payments implications; and conclusions, lessons, and policy challenges. Charts and tables.
Download or read book Impact of Foreign Direct Investment on Economic Growth of Pakistan written by Mukhtiar Ali and published by . This book was released on 2019 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the short and long run impact of Foreign Direct Investment (FDI) on Economic Growth of Pakistan. For this purpose, time series data from 1976-2015 has been collected from State Bank of Pakistan, World Bank and Economic Survey of Pakistan. Dependent variable used as Economic Growth (Gross Domestic Product Growth Rate (GDPGR) and independent variables as FDI, Gross Domestic Educational Expenditure (GDEX), Domestic Capital (KD), Openness to Trade (OPT), External Debt (EXD) and Labour Participation Rate (LPR). For stationarity of data Augmented Dickery Fuller (ADF) test was used and Auto Regressive Distributed Lag (ARDL) model was used to check the long-term co-integration among variables. The results of the study indicate that the FDI has significant positive impact on Economic Growth of Pakistan in short run whereas; it has insignificant negative impact on long rum at 5% significant level. Furthermore, the statistical results show that economic growth has significant impact on GDEX, OPT, EXD, KD and Insignificant impact on FDI and LPR. The significant epitome of this study is the requirement of the policy restructuring and implications by the Government of Pakistan which can be drawn from the findings of this study. Government of Pakistan should take necessary measures based on the recommendations of this study to enhance FDI and attract more investments both national and international.
Download or read book Foreign Direct Investment and Economic Growth written by Azam Muhammad and published by LAP Lambert Academic Publishing. This book was released on 2011-04 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objectives of this research study were to know about the influence of various economic, social and political determinants of host country in enhancing FDI.Further, an attempt has been made to exploring the impacts of domestic investment, FDI, human capital and trade openness on economic growth.For analysis secondary data have been utilized over the time period from 1971 to 2005.Regression models have been used and the methods of Least Square, TSLS, and Generalized Method of Moment have been applied as analytical techniques for the empirical estimation. It has been argued that foreign capital inflow particularly in the form of FDI is likely to encourage national economic development in a host country by playing supportive role to local investment and by bringing many other benefits. Pakistan is a developing country and characterized by low per capita income, burden of external debt, lack of capital, low saving rate, rapid growth of population, and deficit in balance of payment etc. Domestic resources are short to finance the development needs of the country, therefore, FDI is one of the important sources of external finance for the economic growth and development of Pakistan.
Download or read book Impact of Foreign Direct Investment on Economic Growth of Pakistan written by Najia Saqib and published by . This book was released on 2013 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given contrasting evidence in the literature pertaining to the impact of Foreign Direct Investment on the host country's economy, we take the case of Pakistan and test the said association for this nation. The data used for this study has spanned over the period of 1981 till 2010. Besides FDI, four other variables including Debt, Trade, Inflation and Domestic Investment have been included in the study, to regress upon GDP of this country. The methodology to test the impact of these variables on Pakistan's economy has been limited to the least squares method. The co-integration of the variables has been ascertained through application of Augmented Dickey Fuller Test and is found to hold in the long run. Our findings indicate that Pakistan's economic performance is negatively affected by foreign investment while its domestic investment has benefitted its economy. Moreover, the nation's debt, trade and inflation have found to have negative impact on its GDP.
Download or read book The impact of IMF Credit on the economic growth of Pakistan written by Tashif Ahmed and published by GRIN Verlag. This book was released on 2020-10-05 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2019 in the subject Business economics - Investment and Finance, grade: 95.0, GC University, language: English, abstract: This empirical study was conducted to find the impact of IMF credit on the economy of Pakistan. Amid of 2018, Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. However, the studies have shown the controversial effects of IMF credit and its programs on the economies. Many critics believed that the programs of IMF exert significant effects on the economy, though this study was conducted to find the impact of IMF credit programs on the economy of Pakistan. The results depicted that the acceptance of the null hypothesis and rejection of the alternative hypothesis. Thus, the finding is that there is no impact of IMF credit programs on economic growth (GDP) of Pakistan since 1971. This proves that Pakistan can invest their borrowed loan in profitable projects to prosper the economic growth. Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. Before approving the loan the government of Pakistan must convince the IMF for less harsh conditionality against the additional fund than its quota. However, it would be a challenging task to reach IMF to demand 300% more than its quota. So, it is significant to know that whether the government is consuming that loan in fruitful projects so that enough turnover would generate from the economy to pay back the acquired loan. Unfortunately, despite of the global growth objective of IMF, around 11 major conditions imposed by IMF including: excise duty on service as well as agricultural sector, less expenditure in development programs of public sectors, currency devaluation, ceasing gas and electricity subsidy, uniformity in the rates of dollar exchange rate and interbank, ceasing of financial intervention in stock market of Pakistan, raise markup rate on bank and bank transactions, ceasing of non- development expenditure under budget of defense, non-allowance of supplementary grants to the government sectors, reduction in the non-developing expenses of ministries.
Download or read book Impact of Domestic and External Debt on Economic Growth of Pakistan written by Rabia Atique and published by . This book was released on 2013-06-21 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Governance of Foreign Aid and Its Impact on Poverty in Pakistan written by Abid A. Burki and published by . This book was released on 2000 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Capital Flows and Economic Growth in Pakistan written by Sharafat Ali and published by . This book was released on 2014 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pakistan economy has received large inflows of foreign capital, in shape of foreign debt, FDI and worker's remittances, over the years. The present study is focused on the examination of effects of these flows on economic growth in Pakistan. Johansen cointegration technique and Granger causality test has been used for the analysis for the sample period of 1972-2013. The results reveal negative impacts of these flows on economic growth of the economy in long run. Short run analysis confirmed unidirectional causality running from debt service, FDI, inflation and literacy rate to growth. Causality from domestic investment is not concluded but it run from growth to domestic investment. Bidirectional causality between remittances and growth has been found. The analysis suggests some policy recommendations such as domestic resource mobilization, building of physical infrastructure, financial development, suitable macroeconomic framework for price stability and improvement in human capital for the long run growth of the economy.
Download or read book Impact of Foreign Direct Investment Imports Exports of Goods and Services on Economic Growth of Pakistan written by Ahmed Imran Hunjra and published by . This book was released on 2018 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic growth of any country plays a significant role in the progress of the country. The role of the foreign direct investment is very significant towards the progression of the economy of Pakistan. This study examines the impact of imports, exports, and foreign direct investment on GDP of Pakistan. Data was obtained from site of State Bank of Pakistan, Federal Bureau of Statistics, and International Financial Statistics for last 23 years. E-views was used for data analysis. The results clearly show that the success for the increase in the GDP or economic growth these three factors, which are FDI, imports and exports, plays significant role.
Download or read book Exchange Rate Instability and Trade written by M. Ali Kemal and published by . This book was released on 2005 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Debt Overhang Debt Reduction and Investment written by International Monetary Fund and published by International Monetary Fund. This book was released on 1990-09-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: While there is a substantial body of literature on the effects of “debt overhang” on investment in heavily-indebted countries, there is surprisingly little empirical work available on this subject. This paper tests the hypothesis that the stock of foreign debt acts as a disincentive to private investment in the specific case of the Philippines. The empirical estimates provide support for this hypothesis, particularly after 1982. The estimates indicate that a $1.3 billion debt reduction (such as the one completed through the buyback operation in early 1990) would increase investment demand by something between one half and two percentage points of GNP.
Download or read book Contribution of Fdi in Economic Growth of Pakistan written by Haider Mahmood and published by LAP Lambert Academic Publishing. This book was released on 2012-04 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the recent decades, Foreign Direct Investment (FDI) as a growth-enhancing component has received great attention in developing countries generally and in less developed countries particularly. It has been a matter of great concern for many economists that how FDI affects economic growth of host countries. In a closed economy, with no access to foreign savings, investment is financed solely from domestic savings. However, in an open economy investment is financed both by domestic savings and foreign capital inflows, including FDI. FDI enables investment-receiving countries to achieve investment levels beyond their capacity to save.
Download or read book Escaping the Debt Trap written by Sakib Sherani and published by . This book was released on 2002 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Events Influencing the External Debts of Pakistan written by Nawaz Ahmad and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study was conducted to evaluate the trend in external debts, and events influencing the increase or decrease in external debts of Pakistan. Obviously external debt is risky for economic development in both developed and developing countries but the developing countries are more prone to suffer as compared with developed countries. Developing countries are facing the problems of capital scarcity, low saving, traditional technology, poor education and lack of resources for economic development. The problem of public debt in Pakistan is very grave and is almost of similar nature. Although Pakistan's external debt has increased because of misuse of loans, and many developmental projects remained uncompleted due to political instability and frequent changes in governments policies because each new government plan their new projects and new policies further over burden the economy. Pakistan's population increases very rapidly and therefore demand increases. Pakistan is not selfsufficient in food stuffs and even imports wheat from abroad. Strong defense is imperative for a country but spending of huge amount on defense increases external debt further. The economic status of Pakistan is very unsafe with unsustainable external debt. Pakistan has been unsuccessful in controlling a balance between expenditure and revenue. High and rising external debt burden constitutes a serious constraint for development; a major barrier to macroeconomic stability and hence, to growth and poverty reduction; a discouragement to foreign investment because it creates a high risk environment and exchange rate depreciation; and a discouragement for government to carry out structural reforms in the various sectors of the economy.
Download or read book Getting Out of the Debt Trap written by Eatzaz Ahmed and published by . This book was released on 2000 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book External Debt Fdi and Economic Growth in Zimbabwe written by Tendai Makova and published by LAP Lambert Academic Publishing. This book was released on 2011-08 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines the relationship between external debt, foreign direct investment (FDI) and economic growth in the Zimbabwean economy over the period 1980 - 2006. The study employs Granger based vector autoregression analysis to investigate this relationship. Results show that there is a bi-directional causal relationship between external debt and economic growth, indicating feedback effects between the two variables. Furthermore, a uni-directional causal relationship running from external debt to FDI was identified, buttressing the idea that Zimbabwe faces a debt overhang problem. Estimations of variance decomposition found statistically significant relationships between external debt, FDI and economic growth. Evidence from impulse response functions shows that the external debt shock significantly explains fluctuations in FDI and economic growth.
