Journal of International Business and Economics

Determinants of FDI in Pakistan: An Empirical Analysis
Rizwan Qaiser Danish, Amna Akram

Abstract
Purpose: The purpose of this study is to describe the major FDI determinants that show capital flow in Pakistan and to investigate impact of FDI determinants on economy of Pakistan in particular. Design/methodology/approach: This paper look into whether FDI determinants influence FDI based in Pakistan by taking time series data using OLS, over the period of 1990-2010. Findings: The relation of FDI with a few FDI determinants including total debt service, Electric power consumption, total external debt, and gross fixed capital formationcontain a strong positive result on economic growth in Pakistan;at the same time as the relation of FDI with Inflationcontain a negative effect. Research limitations/implications: The restrictions of the study are basically the enlargement of data which cannotbe found continuous for 2011 and 2012 completely for all variables. Originality/value: The objective of this study is to define the main FDI determinants that show capital flow in Pakistan and to explore impact of FDI determinants on economy of Pakistan in particular. Secondary objective is the quantify FDI determinants to suggest some policies through which FDI can improve in Pakistan.

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