It is difficult to neglect the prominence of socio-economic factors that dampen the flow of Foreign
Sustained economic growth is a trance of all the developing and developed countries of the world. The need is not just a fetch of economic growth rather is a realization of a fact that the why some economies that receive heavy amount of foreign capital inflows in term of foreign direct investment (FDI) still find hard to capture the economic growth targets. This research captures for the state of the position of economic growth in terms of FDI and other internal factors in Pakistan. The study is based on the time series analysis covering the range of data from 1972 to 2014. Johansen Juselius technique of co-integration is employed for the precise statistical findings. Unit root test is computed in terms of Augmented Dickey Fuller Test (ADF). Granger Causality test and ErrorCorrection Model (ECM) is employed to test for the short-run and long-run relationships and causality between the variables selected in the equation of growth. The results of the study show that FDI and GDP possess positive association in short-run as well as in long-run. Unidirectional causality is also found on account of FDI and GDP. The study suggests that the government of Pakistan is to further pave off the ways that it already practices to attract FDI that is prerequisite for sovereign upcoming scenery of the country.
Rising oil prices, foreign direct investment, and industrial value-added are the key component that affects the economic stature of a country. This study locates the relationship between FDI, rising oil prices, and industry value added on the economic growth of Pakistan. To do the analyses, data length ranging from 1980 to 2020 was used. For the regression results, the analytical technique of Autoregressive Distributed Lag (ARDL) is incorporated. The empirical results show that FDI encourages economic growth. Nevertheless, industry value added is also located for positive affectation on economic growth. However, rising oil prices are found to have negative effects on economic growth. Similarly, the combined effect of oil prices and FDI are found discouraging for economic growth. As a policy option, the government of Pakistan must need to encourage FDI inflows and should step up toward industrialization. On the other side, rising oil prices be controlled at the maximum extent as it is damaging to economic prosperity.
The purpose of this research is to look at the link between fiscal policy, institutional quality, and economic growth in Pakistan. The research employs time series data spanning twenty-five years, from 1996 to 2020. The ADF unit root test is used to verify variable stationarity, the Engle Granger technique is used for cointegration dynamics, and the Error Correction model is used for short term relationships. Overall, the findings demonstrate that both productive and wasteful government spending have a favorable influence on economic growth in the short and long run. In the short and long run, institutional quality has a favorable influence on economic growth. While inflation has a short-term favorable influence on economic growth, but it has a long-term negative impact. The findings suggest that the government should distinguish between productive and unproductive spending and increase investment on productive businesses. The government should place a greater emphasis on improving institutions in order to achieve long-term economic growth.
The aim of this study is to examine the impact of honest leadership and improved infrastructure on the economic performance of the China-Pakistan Economic Corridor (CPEC) project. In this study, economic factors are taken into consideration to evaluate the economic performance of the CPEC project. For this purpose, primary data is collected from CPEC employees who are working on various projects CPEC through questionnaires. Google forms were shared with them via different social media tools such as WhatsApp, Facebook, and Instagram for the data collection. A total of 250 questionnaires were distributed, but only 220 were used for data analysis of this study. Therefore, the response rate was 88%. Hypotheses are tested in Smart-PLS version 3 by using structural equation modelling. The findings of this study revealed that there is a positive and significant impact of honest leadership and improved infrastructure on the economic performance of the CPEC project performance. In addition, improved infrastructure is found to have a more positive and significant impact due to higher beta and t-value with respect to honest leadership. The leadership of Pakistan and China should understand the importance of these variables and honest leadership for the successful completion of the CPEC project. The top management of both countries, Pakistan and China, should understand the important of these variables and honest leadership is an important factor for the successful completion of the CPEC project.
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