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Impact of FCI on Economic Growth in Pakistan


Author Info

  • Ghulam Mohey-ud-din

    (GC University, Lahore, Pakistan)


The Two-Gap Model suggests that the Poor countries have to rely on the foreign capital inflows (FCI) to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign capital inflows like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. So, UDC (including Pakistan) have to rely on the Foreign aid, foreign Debt FDI and portfolio investments. The role of these external resources (FCI) always remains questionable. This paper analyzes the impact of the foreign capital inflow on GDP Growth in Pakistan during 1975-2004.

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Bibliographic Info

Article provided by Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) in its journal Journal of Independent Studies and Research (JISR).

Volume (Year): 5 (2007)
Issue (Month): 1 (January)
Pages: 24-29

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Handle: RePEc:zab:ancoec:v:5:y:2007:i:1:p:24-29

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Keywords: Foreign capital inflows (FCI); Foreign Investment; Economic Growth; Foreign Economic Assistance; Official Development Assistance (ODA); Foreign Direct Investment (FDI). Foreign Debt Burden; Aid and Growth; FCI Effectiveness.;

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  1. Leff, Nathaniel H, 1969. "Dependency Rates and Savings Rates," American Economic Review, American Economic Association, vol. 59(5), pages 886-96, December.
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Cited by:
  1. Sharafat, Ali & Hamid, Waqas & Muhammad, Asghar & Raheel Abbas, Kalroo & Muhammad, Ayaz & Mukhtyar, Khan, 2013. "Foreign Capital and Investment in Pakistan: A Cointegration and Causality Analysis," MPRA Paper 55640, University Library of Munich, Germany, revised 28 Apr 2013.


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  1. Ghulam Mohey-ud-din (economist) in Wikipedia (English)


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