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Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size

Journal of Economics and Political Economy

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Title Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size
 
Creator AHMAD, Mushtaq; Department of Management Sciences, CIIT, WahCantt, Pakistan
AHMAD, Ferhan K.; BMW UK Ltd, Summit ONE, Summit Ave, Farnborough , UK.
NASIR, Muhammad Ali; Leeds Beckett University
England
KHAN, Gulzar; Department of Economics, Federal Urdu University, Islamabad, Pakistan
 
Description Abstract. In continuation of the efforts to understand the dynamics of internal market, this study proposes Internal Absorption as an instrument for measuring market size for economies which confront large trade deficit over a longer period of time. The study empirically examines the impacts of Internal Absorption along with trade openness and gross private investment on FDI inflows in Pakistan. The ARDL approach to co-integration and ECM based on ARDL is used to test the existence of long run relationships among variables for the period 1976-2009. The result establishes strong positive relationship between Internal Absorption and FDI inflows in short as well as in the long run.Keywords. Foreign direct investment, Internal absorption, Trade openness, Private investment.JEL. F18, F21, F23, O47.
 
Publisher Journal of Economics and Political Economy
Journal of Economics and Political Economy
 
Contributor
 
Date 2015-09-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEPE/article/view/386
10.1453/jepe.v2i3.386
 
Source Journal of Economics and Political Economy; Vol 2, No 3 (2015): September; 400-410
Journal of Economics and Political Economy; Vol 2, No 3 (2015): September; 400-410
2148-8347
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEPE/article/view/386/480
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/386/140
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/386/142
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/386/143
 
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http://creativecommons.org/licenses/by-nc/4.0