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Role of FDI in Stock Returns: A Case of Pakistan | Asian Journal of Economics, Finance and Managemen

The impact of foreign direct investment (FDI) on the Pakistan stock market was investigated in this article. Pakistan is an Asian rising economy that has drawn significant foreign direct investment. The study relied on secondary data gathered from a variety of credible sources. For the FDI data, we utilised the Pakistan Statistical Bureau, and for the stock returns data, we used Yahoo Finance. The information was gathered between 2005 and 2914. We discovered that in the instance of Pakistan, there is a positive relationship between stock returns and FDI after using regression analysis. This research aids policymakers in understanding how foreign direct investment might aid the growth of a developing country like Pakistan. This is why Pakistan is drawing an increasing amount of FDI.



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