Author : Zia ur rahman 1*, umer suffian ahmad 2, aqeela raza 3 and aabera atta4.
Keyword : Gross fixed capital formation, foreign private investment, foreign direct investment, za test and block exogeneity.
Subject : Economics
Article Type : Original article (research)
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Abstract : The speculation of foreign financial resources to a country helps to boost up the available resources, increase the capital formation and availability of funds not only to encourage the private investment but also promote more speculation of the resources. The capital inflow does not mean only the flow of currency notes, it means the mobilization of the skilled labor, technology and machinery and all other resources, which are unavailable in the developing economy to assist the growing process. That’s why this study is conducted to capture the influence and association of the capital inflow to the economic development of Pakistan. The finding of the study states that all the variables are co-integrated in the short as well as in the long term, along with sharp convergence to equilibrium. And the availability of resources leads the economy towards stabilization. All the diagnostic and stability test states that the model is normal, no problem of heterogeneity and serial correlation even parameter is also stable. While impulse response analysis determines that the response of all variables would be positive in the future. The study proposed that the government should not create the scenario for crowding out along with the easy excess to the capital.
Article by : Zia Ur Rahman
Article add date : 2021-01-17
How to cite : Zia ur rahman 1*, umer suffian ahmad 2, aqeela raza 3 and aabera atta4.. (2021-January-17). The empirical investigation of the capital inflow which influence the economic growth of pakistan. retrieved from https://www.openacessjournal.com/abstract/558