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Exports Performance under the Role of Foreign Direct Investment in Pakistan: An ARDL Approach

International Journal of Economic Practices and Theories

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Field Value
 
Title Exports Performance under the Role of Foreign Direct Investment in Pakistan: An ARDL Approach
 
Creator Ayaz, Muhammad
Yousuf, Muhammad Umair
Asghar, Muhammad
 
Subject Economics
ARDL, exports, foreign direct investment (FDI), terms of trade.
F14, F21
 
Description Abstract: Foreign Direct Investment (FDI) is the largest source of inflow offoreign earnings for the countries of the developing world. This study examinesthe short and long run association between FDI, exports and growth for Pakistanby employing the Autoregressive and Distributed Lags (ARDL) approach in thetime series framework from 1975 to 2011. Augmented Dickey Fuller (ADF) test isapplied for checking the stationarity of data, while ARDL technique is appliedfor the presence of cointegration; long run relationship and short runrelationship among macroeconomic variables in case of Pakistan. The ARDL modelfound cointegration at level among the variables while the Error CorrectionTerm (ECT) is insignificant at 1% significance level. The positive relationshipbetween FDI and exports in the short run as well as in the long run ispredicted by the parameters of ARDL. The study suggests thatgovernment should attract FDI in those sectors which mainly contribute toexports directly (like textile manufacturing) or indirectly (like powergeneration sector) to make exports competitive in the international market.
 
Publisher International Journal of Economic Practices and Theories
 
Contributor N/A
 
Date 2013-07-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ijept.org/index.php/ijept%20/article/view/Exports_Performance_under_the_Role_of_Foreign_Direct_Investment_in_Pakistan
 
Source International Journal of Economic Practices and Theories; Vol 3, No 3 (2013); 192-202
2247 – 7225
 
Language eng
 
Relation info:eu-repo/grantAgreement/EC/FP7/123456
http://www.ijept.org/index.php/ijept%20/article/view/Exports_Performance_under_the_Role_of_Foreign_Direct_Investment_in_Pakistan/pdf
http://www.ijept.org/index.php/ijept%20/article/downloadSuppFile/Exports_Performance_under_the_Role_of_Foreign_Direct_Investment_in_Pakistan/12
 
Rights info:eu-repo/semantics/openAccess