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Impact of Foreign Capital Inflows on Household Savings in Pakistan

Author

Listed:
  • Muhammad Abdullah Idrees
  • Ayesha Khan
  • Muhammad Arsalan Khan
  • Muhammad Bilal Raees
  • Muniza Syed

Abstract

This study aims to discover the impact of foreign capital inflows (FDI, RT and FA) on household savings of Pakistan. Data used in this study has been obtained from the website of State Bank of Pakistan for the period of 1981-2010. Statistical tools including multiple regressions analysis was applied for analysis. Results explain that foreign direct investment (FDI), remittances (RT) are having positive and significant impact on household saving (HS) but foreign aid (FA) is having negative and insignificant impact on household saving, so it is recommended that if a developing country like Pakistan wants to increase the household saving it should give thoughtful importance to FDI and RT than FA with respect to household savings in Pakistan.

Suggested Citation

  • Muhammad Abdullah Idrees & Ayesha Khan & Muhammad Arsalan Khan & Muhammad Bilal Raees & Muniza Syed, 2020. "Impact of Foreign Capital Inflows on Household Savings in Pakistan," European Journal of Business and Management Research, European Open Science, vol. 5(4), July.
    • Handle: RePEc:epw:ejbmr0:v:5:y:2020:i:4:id:50436
    DOI: 10.24018/ejbmr.2020.5.4.436
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    References listed on IDEAS

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    1. Mohey-ud-din, Ghulam, 2005. "Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]," MPRA Paper 1211, University Library of Munich, Germany.
    2. Naheed Z. Khan & Eric Rahim, 1993. "Foreign Aid, Domestic Savings and Economic Growth (Pakistan: 1960 to 1988)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1157-1167.
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