文章基本信息

标题：Empirical analysis of foreign direct investment and economic growth in Pakistan using VECM model
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作者：Iqra Ashraf ; Shi Yong ; Raja Muhammad Afzal 等
期刊名称：African Journal of Business Management
印刷版ISSN：1993-8233
出版年度：2019
卷号：13
期号：16
页码：544-556
DOI：10.5897/AJBM2019.8857
出版社：Academic Journals
摘要：Theoretically Foreign Direct Investment (FDI) is considered as a growth accelerating component that has attained significant heed in the development of the country in the past decade. Pakistan has been selected due to its geostrategic location, which is a major attraction for developed economies to invest in for lucrative returns. This study objective is to trace the long as well short run analysis among FDI, Gross Domestic Product (GDP), Gross National Income (GNI) and Imports (IMP) of Pakistan from year 1987 to 2017 by using the ADF Unit Root Test, Johansan co-integration approach, VECM and Granger causality methods. The results reveal that the two-way causality between FDI and growth in Pakistan is not highly significant. Pakistan's economic growth indeed attracts FDI influx, which supports the market-size hypothesis; while the FDI influx stimulates the economic growth of Pakistan to some degree, the result is not significant. In light of the results achieved, this study suggests future recommendations to policy makers for an effective strategic plan to welcome foreign investments in Pakistan.
关键词：Foreign direct investment (FDI); economic growth; vector error correction model (VECM); unit root test; co-integration analysis.