Impact of foreign financial inflows on economic growth of Pakistan

Javaid, Shahid Hussain (2012): Impact of foreign financial inflows on economic growth of Pakistan.

Abstract

This paper investigates the causal relationship between foreign financial inflows and economic growth for Pakistan using annual data from 1981 to 2009. The paper uses time series econometrics tools to investigate the relationship between foreign financial inflows, real exchange rate, trade openness, government expenditure and economic growth. The study found positive relation between foreign financial inflows and economic growth for Pakistan. The causal relation is unidirectional from growth to financial inflows.

• Item Type: MPRA Paper
• Language: English
• Keywords: Remittances, Foreign Direct Investment, Economic Growth and Time-Series Models
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

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