The Determinants of Foreign Direct Investment in Pakistan: an Empirical Investigation
The changing modes of international transactions and the cross-border mobilisation of factor resources, in pursuance of transnational production, constitute new dimensions for sustained economic growth. Foreign Direct Investment (an influential element of this process) is defined as the source of acquisition of managerial control by a business enterprise of a foreign country over a business activity in a host country [Graham (1982)]. The changing perceptions and more attractive policies of the host developing nations have changed the destinations of FDI flows from industrially developed countries to high growth developing centres. FDI stock held by developing countries has risen from $ 132.95 billion in 1980 to $ 1438.48 billion in 1999. Their share in inward stock has reached to 30.14 percent in 1999 as against 26.2 percent in 1980. FDI inflows during this period were raised from $ 4.42 billion to $ 208.0 billion, at an annual growth rate of 22.5 percent while GDP growth rate for that period was 3.9 percent. FDI brings the most needed capital fund, advanced production technique, snobbish managerial skills, advertising and marketing expertise, global links and the controversial phenomenon of “transfer pricing”.1 Pakistan, the world’s 7th most populated country with 140 million people, a relatively high growth rate of GDP (averaging around 6 percent), with a significant stock of natural resources and a variety of investment provisions has remained unattractive for FDI inflows.
Volume (Year): 42 (2003)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Web page: http://www.pide.org.pk
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Scaperlanda, Anthony E & Mauer, Laurence J, 1969. "The Determinants of U.S. Direct Investment in the E.E.C," American Economic Review, American Economic Association, vol. 59(4), pages 558-68, Part I Se.
- Dhaneshwar Ghura & Barry Goodwin, 2000. "Determinants of private investment: a cross-regional empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1819-1829.
- Ray, Edward John, 1977. "Foreign Direct Investment in Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 283-97, April.
- Hafer, R.W. & Jansen, D.W., 1990.
"The Demand For Money In The United States: Evidence From Cointegration Tests,"
9010, Erasmus University of Rotterdam - Institute for Economic Research.
- Hafer, R W & Jansen, Dennis W, 1991. "The Demand for Money in the United States: Evidence from Cointegration Tests," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(2), pages 155-68, May.
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:42:y:2003:i:4:p:697-714. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If references are entirely missing, you can add them using this form.