IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i3d10.1007_s13132-022-01006-w.html
   My bibliography  Save this article

Nexus Between FDI, Economic Growth, Industrialization, and Employment Opportunities: Empirical Evidence from Pakistan

Author

Listed:
  • Irfan Khan

    (Shaanxi University of Science and Technology)

  • Jian Xue

    (Shaanxi University of Science and Technology)

  • Shah Zaman

    (Nanjing University of Aeronautics and Astronautics)

  • Zunair Mehmood

    (Shaanxi University of Science and Technology)

Abstract

This study investigates FDI and employment opportunities arising in Pakistan from the Gwadar seaport. Moreover, it empirically examines the impact of gross capital formation, gross domestic income, economic growth, industrialization, and population growth on employment opportunities. Annual data of 30 years from 1990 to 2019 is used and retrieved from the World Development Indicator website. For unit root testing, this study employed ADF and PP tests. The ARDL bound test approach is applied to confirm the existence of a long-run relationship that is further extended for long-run and short-run estimations of the selected variables. The findings of the ARDL model show that increasing foreign direct investment, gross capital formation, and industrialization increases the employment opportunities in Pakistan during the long run and short run. In contrast, gross domestic income, economic growth, and population growth negatively connect with employment opportunities for both the long term and short term in Pakistan. Moreover, the outcomes of the fully modified OLS approach used as a robust analysis also support the findings of the ARDL. Lastly, this study proposes future policy recommendations which help increase foreign direct investment inflow and employment opportunities in Pakistan.

Suggested Citation

  • Irfan Khan & Jian Xue & Shah Zaman & Zunair Mehmood, 2023. "Nexus Between FDI, Economic Growth, Industrialization, and Employment Opportunities: Empirical Evidence from Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(3), pages 3153-3175, September.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-01006-w
    DOI: 10.1007/s13132-022-01006-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-01006-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-022-01006-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    FDI; Economic growth; Industrialization; Employment opportunities; Gwadar seaport Pakistan; ARDL model;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-01006-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.