To What Extent Foreign Direct Investment (FDI) Affect in Economic Development of Pakistan

Abstract

Foreign direct investment has an important substance for the economic growth those countries which are still devolving, the effects of the foreign direct investment on the economic growth by a continuous process like increasing domestic investment, human capital formulation and facilitating   the transfer technology to the host countries. The core purpose of this study is to investigate the role and impact of foreign direct investment on the economic growth of the Pakistan from 1975 to 2010 and these results have support to this article that FDI has positive effect on the economy growth both short and long run.

Keywords: Foreign direct investment, Reserve, Inflation, Gross Domestic Investment, Economic Growth