Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187986 
Year of Publication: 
2009
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 2 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2009 [Pages:] 16-24
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
During the last few decades, governments of developing countries have increasingly viewed foreign direct investment (FDIs) as a catalyst for economic growth. This study investigates the impact of FDI on economic growth of Pakistan by using Endogenous Growth Model. Out of a number of variables affecting economic growth, few have been taken into our model e.g. Foreign Direct Investment (FDI), Domestic Savings, Employed Labour Force, Capital Formation, Human Capital Index and Balance of Trade. The study examines the causality among economic Growth and all variables mentioned above over the period 1972-2005 using Johansen.s maximum likelihood co-integration test and multivariate Granger causality test developed by Yamamoto and Toda (1995). The results of Granger causality indicated that in the short run, economic growth is caused by FDIs, domestic savings, human capital index, employed labour force and balance of trade.
Subjects: 
Foreign Direct Investment
Economic Growth
Causality
Human Capital Index
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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