Relationship between Terrorism and Foreign Direct Investment FDI in Pakistan

Abstract

This article examines the relationship between Net Inflow of Foreign Direct Investment (NIFDI) and Number of Terrorism Attacks (NTA) in Pakistan. We collect secondary data of past fourteen (14) years (2000 to 2013) NIFDI and NTA. The multiple regression technique is used to test the relationship of two variables. The Result shows that there is a negative relationship between the NTA and NIFDI in Pakistan. NIFDI is decreased due to increase of NTA and therefore is a reason of negative interest foreign investors in Pakistan.

Keywords: Net Inflow of Foreign Direct Investment (NIFDI), Number of Terrorism Attacks (NTA).