scholarly journals EFFECTS OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM PAKISTAN

2014 ◽  
Vol 10 (2) ◽  
Author(s):  
Akhtiar Ali ◽  

Purpose: FDI is one of the very eminent factors of world economy. It especially plays an effective role in developing countries’ economic growth, for that reasons developing economies struggle a lot to invite FDI. The previous researches provide support that FDI has a positive impact on growth of an economy. In this study the role of FDI along with other explanatory variables like gross capital formation, labor force participation and public spending against the economic growth. Methodology/Sampling: The variables supplemented into the model are based on well-established and long-standing economic theory, tested under the standard OLS regression. The data were referred from United Nation Conference for Trade and Development (UNCTAD) and State Bank of Pakistan FDI database. Time period for this is from 1980 to 2012. All in all32years samples were taken for study in this research. Findings: The main conclusions drawn are that in the case of Pakistan, FDI and Labor force participation is found to be positively associated with economic growth. Practical Implications: This study is going to help policymakers to take active measures and formulate strategies that will enhance economic growth in the country.

2019 ◽  
Vol 1 (2) ◽  
pp. 89-102
Author(s):  
Mabrooka Altaf

The current study empirically investigates the relationship among female labor force participation and governance in developing nations, using panel data of 62 developing countries, from year 1996 to 2016. The two variables taken as dependent variables are women labor force participation and governance. Results of GMM estimation showed that there is positive association between women labor force participation and governance. Education, GDP per capita, and globalization has positive, while income inequality has negative impact on governance. Similarly, education, fertility rate and rural population has negative, and globalization has positive impact on female labor force participation. So, it is concluded that the importance of governance and women labor force participation cannot be refused in terms of growth enhancement, which will consequently improve the social and economic conditions of developing countries.


2011 ◽  
Vol 4 (11) ◽  
pp. 15 ◽  
Author(s):  
Goher Fatima

The contribution of female education has been very important in the GDP growth of the country, but this very sector has been ignored by the Government. This paper focuses on the importance of female education and highlights its significance for national development. It also brings out some impediments, obstacles and barriers confronting female education, especially the low level of the investment on the sector in the rural areas of Pakistan. The study further identifies the effects of female contribution in labor force participation. The study explores the opportunities to encourage the role of female in the developmental activities.


2021 ◽  
Vol 13 (11) ◽  
pp. 5954
Author(s):  
Qamar Abbas ◽  
Li Junqing ◽  
Muhammad Ramzan ◽  
Sumbal Fatima

This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.


2020 ◽  
pp. 6-12
Author(s):  
S. V. Savina

Today, a difficult situation has developed in the field of wages and incomes of the population, associated with the need to increase the level of wages and real incomes of the population, since low effective demand in the domestic market can become the main constraint on economic growth in the near future. The main goal of wage reform in modern conditions is to restore the role of wages as the main incentive for productivity growth and labor efficiency, which will have a positive impact on the functioning of production and will give an impetus to its further development.


2017 ◽  
Vol 4 (2) ◽  
pp. 217 ◽  
Author(s):  
Adnan Khaliq ◽  
Dilawar Khan ◽  
Sultan Akbar ◽  
Muhammad Hamayun ◽  
Barkat Ullah

Female labor force plays a significant role in the economic development of a country. The core objective of this paper is to examine the nexus between female labor force participation rate and Pakistan’s economic growth using time series data for the period 1990-2014. The data was extracted from World Development Indicators database. Augmented-Dickey Fuller (ADF) test was applied to examine the data for unit root. The results show that both the variables--- female labor force participation rate and economic growth---are stationary at first difference i.e. I(1). The error correction model (ECM) and Johansen co-integration tests were used to examine the co-integration relation between the variables. The econometric results conclude that there is long-run and a U-shaped link between economic growth and women labor force participation rate of Pakistan. The results conclude that lower female labor force participation rate leads to lower economic growth in Pakistan. This paper has important policy implications, suggests that policies intend to remove such barriers could help to enhance the Pakistan’s economic growth.


2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.


2017 ◽  
Vol 107 (5) ◽  
pp. 174-179 ◽  
Author(s):  
Daron Acemoglu ◽  
Pascual Restrepo

Several recent theories emphasize the negative effects of an aging population on economic growth, either because of the lower labor force participation and productivity of older workers or because aging will create an excess of savings over desired investment, leading to secular stagnation. We show that there is no such negative relationship in the data. If anything, countries experiencing more rapid aging have grown more in recent decades. We suggest that this counterintuitive finding might reflect the more rapid adoption of automation technologies in countries undergoing more pronounced demographic changes and provide evidence and theoretical underpinnings for this argument.


This book started with a brief review of different outlooks on the role of financial sector development in the process of economic growth. Then it highlighted the fact that recent studies, particularly those originating from modern growth theory, suggest that financial intermediation affects growth through various channels. To test this proposition, an empirical model was built, data were obtained, empirical tests were carried out, and results were discussed. The final chapter in this book, therefore, summarises key research findings and discusses the potential channels through which financial sector development affects the economic growth process. The chapter further highlights contributions of this research to growth studies, discusses policy implications arising from the findings of this research, and provides directions for future research and analysis.


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