Impact of Foreign Direct Investment and Exports on Economic Growth of Pakistan

Abstract

In this study, by means of instance succession exploration we observed impact of foreign direct investment, exports and exchange rate on economy intensification of Pakistan. Information were collected from IMF  ,World Bank range figures since 1990 to 2010. We used four variables for this purpose like GDP; it is dependent variable and independent variables similar to Foreign Direct Investment, export and Exchange Rate. By using technique ofOLS and Unit Root Test, thepositive relationship sends abroad and foreign direct investment on GDP. The study conduct aims to analyze benefit of FDI in Pakistan. The objective of FDI is to earn maximum profit and show in form of administrative skills, superior knowledge, improved an employment opportunities, add to in government returns and cause decrease unemployment of country. Remittance inflows in 2004-05 reach US$ 1524 million as maximum if compared last three year in country. This finds FDI in Pakistan more appropriate areas are energy sector, IT and telecommunication, value additional material .Management of Pakistan responsive to significance FDI and results show that is important effect of export and FDI on an economy growth of Pakistan.

Keywords:GDP, FDI, Exports, Exchange rate.