The goal of this analysis is to explore the impact of domestic private investment in large-scale manufacturing sector on the output growth of the large-scale manufacturing in Pakistan. The investigation utilized yearly data for the year 1973-2020. By applying the autoregressive distributed lag (ARDL) technique, the study examines both short-term and long-run effects of domestic private investment (DPI) on output growth in large-scale manufacturing.However, the study affirms a positive and significant relationship among domestic private investment, exports and value-added, large-scale manufacturing (VAL) in both short-and long-run, while market size and inflation also have a negatively and significantly influence on the value-added, large-scale manufacturing sector. It is also confirmed that domestic private investment, export, inflation have a bidirectional causal relationships with large-scale manufacturing, value-added. Moreover, findings also implies that unidirectional causality is running between employment (EMP), market size (MS), and large-scale manufacturing growth output growth (VAL). Hence, numerous incentives with tax cuts or subsidizations must be sponsored by the supervision of government in a direction to foster private investment. Provided that political stability, better infrastructure, and management in industrial manufacturing zones empowers to attract transnational exports by improving law and order conditions in Pakistan.
Keywords: Domestic private investment, value-added, large scale manufacturing, export, Pakistan.
This study's objective is to evaluate the influences of numerous variables, including trade openness, renewable energy, and gross domestic product, on nitrous oxide emissions from 1990 to 2022. The Kao and Pedroni result demonstrates that the variables are cointegrated. This study the relationships between renewable energy, GDP, and trade openness on CO2 emission in G-7 nations. Using the Panel ARDL approach, the results show that, in the long run, there is a positive and significant correlation between GDP and trade openness on nitrous oxide emission in G-7 countries. Additionally, there is an insignificant but positive link between renewable energy and N2O emissions. Our proposal to political leaders and government officials is that they should strongly encourage foreign investors to participate in the production of clean and renewable energy, such as green energy, rather than conventional energy, in order to both support the activities of our economy and promote environmental stability. The government has to impose rigorous environmental laws and regulations, as well as come up with incentives for people to follow those policies, in order to enhance the overall quality of the environment.
Various studies in the past have examined the effect of foreign direct investment on economic growth, the key basic assumption common to these papers is that economic growth is a good proxy for welfare of both developed and developing countries. However, research on the influence of foreign direct investment on an expanded conception of socio-economic progress such as human development (measured by the human development index) is absent. This research paper presents the literature on foreign direct investment (FDI) and social sectors (health & education) development in the context of developing economies.
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