Publication | Closed Access
Nexus among foreign direct investment, domestic investment, financial development and economic growth: a NARDL approach in Pakistan
11
Citations
0
References
2022
Year
EconomicsInternational FinanceMacroeconomicsDevelopment EconomicsEconomic DevelopmentInternational Capital MarketReal InvestmentFinancial IntegrationBusinessEconometricsEndogenous Growth TheoryInternational InvestmentDomestic InvestmentHost EconomiesEconomic GrowthNardl ApproachFinanceForeign Direct Investment
One of the most recent issues has been the relationship between foreign direct investment and economic development in host economies. This paper examines the nonlinear relationship between economic growth, foreign direct investment, domestic investment, and financial development using annual time series data from 1970 to 2019. We used the nonlinear auto-regressive distribution lag (NARDL) co-integration technique. The results show the positive effects of FDI and DI are more significant than the negative effects and follow a nonlinear direction. As a result, policymakers should tighten their hold on FDI channelling and effectively enforce regulations in order to boost Pakistan's economic development.