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 526
- Downloads 44
AN ANALYSIS FOR CREDIT RATING AND MOMENTUM STRATEGY
In recent years, investors are increasingly concerned about whether the credit risk will affect the return on investment. This paper discusses the credit rating and momentum investment strategy relationship. The research...
ROBUST MONETARY POLICY IN AN UNCERTAIN ECONOMIC ENVIRONMENT: EVIDENCE FROM TUNISIAN ECONOMY
This paper tries to study the robust monetary policy in an uncertain economic environment. More precisely, our idea is to know how to conduct monetary policy in the case that the central bank does not correctly perceive...
THE DETERMINANTS OF MARKET EMPLOYMENT CAPACITY OF ENTERPRISES IN JIGAWA STATE OF NIGERIA
This paper examines the determinants of market employment capacity of enterprises in Jigawa state, we used primary data collected from 300 entrepreneurs drawn base on purposive and random sampling techniques from three m...
THE IMPACT OF SALARY STRUCTURE, PERFORMANCE REQUIREMENTS, AND TYPE OF BUSINESS ON THE PERFORMANCE OF HOUSING BROKERAGE EMPLOYEES
This study investigated the effects of salary structure, performance requirements, and type of business on the performance of housing agents. The participants in the study survey consisted of the employees of real estate...
Favorable and Unfavorable Conditions for Innovation: Some Cross Country Evidence
The paper employs cross country regression analysis to estimate the effect of democracy and income inequality, adjusting for the level of income and other variables, on country innovation. It finds that both of these var...