Pakistan is a capital-scarce economy and has been relying heavily on foreign capital inflows (FKI) to finance the saving-investment gap. Pro-poor Investment Index (PPII) deals with the dynamic aspect of Investment (FDI)-Poverty-Inequality. The aim of this study is to investigate the potential impact of FDI on the poors (poverty intensity of investment). The study examine as to what extent the poors have benefited from FDI while taking in to account the magnitude of investment and the benefit of investment achieved by the poors during 1985–2006. This research is extended within the phenomena of Pro-poor Growth Index (PPGI) as proposed by Kakwani and Pernia (2000) and Kakwani and Son (2004). During last two decades in Pakistan, three phases are regarded as Pro-poor. First phase is from 1985–86, second is from 1991-93 and the third phase is from 1997-02, while remaining is pro-rich or anti-poor. Cumulative effect for two decades (1985–2006) is Pro-poor. This analysis helps decision makers in developing strategies and policies for promoting investment and alleviating poverty.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
9332.
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