IMPACT OF POLITICAL INSTABILITY AND FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN PAKISTAN
Journal Title: Asian Economic and Financial Review - Year 2016, Vol 6, Issue 2
Abstract
According to economists, political instability is harmful for economic development of any Country. Pakistan is also facing the problem of political instability, since political instability causes a decrease in investment and rapidity of economic development process. This paper aims at analyzing the impact of political instability and foreign direct investment on economic development of Pakistan. The study also checks out what are the variables other than political instability and FDI that effect the economic development of the country. By using times series data from 1980 to 2013 taken from world data bank, an ARDL model is estimated. The estimation of short run result shows that political instability is insignificant, that is, it does not affect economic development in the short run, but in long run its effect on economic development is negative and significant. On the other hand foreign direct investment (FDI) has positive relationship in both short run and in long run. So government should improve political situations and should make strategies to attract FDI.
Authors and Affiliations
Kulsoom Rani*| Scholar at NUML University, National University of Modern Languages, Islamabad, Pakistan, Zakia Batool| Lecturer at NUML University, National University of Modern Languages, Islamabad, Pakistan
Keywords
Related Articles
- EP ID EP2249
- DOI -
- Views 484
- Downloads 44
MICROECONOMIC GASOLINE CONSUMPTION ANOMALIES IN MEXICO: 1997-2007
Economic expansion in Mexico has caused fuel consumption to increase. Because Mexico does not have sufficient refinery capacity, over 40 percent of total gasoline consumed is imported. This has implications for the bal...
THE IMPACT OF BIRD FLU ON THE ECONOMY: CGE MODEL APPROACH (COMPUTABLE GENERAL EQUILIBRIUM MODEL)
The negative impact of the outbreak of bird flu on economic sectors in the partial and macro research will be analyzed using CGE models (Computable General Equilibrium). The result of the simulation studies indicate that...
EXTERNAL AND INTERNAL OWNERSHIP CONCENTRATION AND DEBT DECISIONS IN AN EMERGING MARKET: EVIDENCE FROM PAKISTAN
This study examines the effect of concentration of ownership both external block ownership and managerial share ownership on capital structure decision of Pakistani non-financial firms. The panel data is used to investig...
COMOVEMENTS AND STRUCTURAL FACTORS OF MACROECONOMIC VOLATILITY IN DEVELOPING AND TRANSITION ECONOMIES: A DYNAMIC PANEL DATA APPROACH
This study examines the comovements of some economic variables and explores the structural factors of macroeconomic volatility in developing and transition economies, using dynamic panel technique. According to an analys...
THE VALIDITY OF OKUN’S LAW IN NIGERIA: A DIFFERENCE MODEL APPROACH
This paper, empirically, tests the validity of Okun’s law in Nigerian economy from 1980-2012. The two versions of the difference model approach of the Okun’s law are used even though one of them is frequently used in the...