Abstract

Given contradictory data in the study on the influence of Foreign Direct Investment on the hosting economic growth of the country, researchers choose the instance of Pakistan and examine the aforementioned relationship for this country. The data utilized for this investigation was collected between 1996 and 2020. In addition to FDI, four additional variables, including population, trade, and inflation, had also been added in the research to correlate on this nation’s GDP. The co-integration of the variables was determined using the Phillips perron unit root Test and was confirmed to be valid in the long run. Our studies show that foreign investment has a positive impact on Pakistan's economic growth. Furthermore, the country's trade, and population have all been demonstrated to have a positive while inflation has negative influence on GDP.

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