Impact of Foreign Direct Investment on Economic Growth in Pakistan

Abstract

The study is conducted to find out the impact of foreign direct investment (FDI) on economic growth of Pakistan. Time series data is utilized which is comprises from 1981 to 2010, collected from the world data bank. Multiple regression technique is used in which gdp is dependent variable while foreign direct investment (FDI) and consumer price index (CPI) are independent variables. The result indicates that there is a positive relationship between the FDI and GDP and have a negative relationship with CPI. When FDI increase the GDP of Pakistan will positively affected by FDI. Foreign Direct investment is a direct investment of a company or entity to in another country. GDP refers to the market value of all final goods and services produced within a country in a given period. It is often considered an indicator of growth and standard of living for a country. Inflation when the price of most goods

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