Impact of Foreign Direct Investment on Economic Growth of Pakistan

This paper examines the effect of foreign direct investment on Pakistan's economic development. This paper examined the impact of independent variables (FDI, exports, domestic capital, human capital index, and number of terrorist attacks) on the dependent variable GDP using data from 1996 to 2015. Statistical techniques such as correlation matrix and regression analysis were used to examine the effect of independent variables (FDI, exports, domestic capital, index of human capital, and number of terrorist attacks) on the dependent variable GDP. The findings indicate that foreign direct investment and the country's gross domestic product have a significant relationship.Other independent variables such as exports, domestic resource, human capital index, and the number of terrorist attacks have an effect on the country's economic growth. Export growth is aided by increased domestic resources and strong human capital, and the government should work to eliminate terrorism in order to attract more foreign investment.

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