Abstract
Exchange rates have main role that affect the macroeconomics performance of any leading country. The objective of this research was to investigate whether uncertainty or fluctuations in exchange rate affects the macroeconomic in Pakistan. This Study was based on secondary and time series data. For this purpose 32 years old data of Exchange rate and FDI for the period of 1982 to 2013 was used and was collected from the website of State Bank of Pakistan. The tests of Correlation and regression analysis were applied through SPSS software to check the relationship between Exchange rate and FDI. The correlation results showed that there is positive significant relationship between Exchange rate and Foreign Direct Investment while in regression analysis the value of R-square = 0.679 which shows that the independent variable Exchange has 67% impact on dependent variable Foreign Direct Investment and research model is accurate. This research will help the mangers, related organization and future researchers to make or revise the further economic decisions.
Highlights
foreign direct investment (FDI) stands for Foreign Direct Investment, a component of a country's national financial accounts
The goal of the research was to investigate the impact of exchange rate volatility on FDI into Pakistan with very specific focus on annually data for the period between 1982-2013
Put the data into SPSS software and applied correlation and regression analysis tests the results suggested the strong evidence that exchange rate and its instability have significant effect on annually FDI inflows into Pakistan for the tested period of time
Summary
FDI stands for Foreign Direct Investment, a component of a country's national financial accounts. Investor and Policy maker focused on the exchange rate of country and make investment their money in that focused country. They have believed that increase in exchange rate creates competitive advantages in international trade. By increasing exchange rate of a country the domestic export goods become cheaper and it increases the demand of export, it means international demand of goods will increase and import will be decreased. It impacts on FDI, all of these effects on GDP of the country
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
