Zain Ullah


The main theme behind the current research is to find an answer to the question Is there any Room for Development in Pakistan? Since Foreign Direct Investment is one of the important determinants of development, hence the above question can be asked alternatively as How the FDI inflow can be increased in Pakistan? Thus, the main objective of the study is to find out the key determinants influencing the development of Pakistan. So far as the research methodology is concerned, in this regard, it is proposed that the main variable like size of economy, Developmental Level, Trade Openness, Human Capital and Trade Agreements have been focused. The data have been gathered for the period of 1982-2015 for nine Asian countries from various International Sources of Economic Indicators. For analysis of data the correlation and regression model have been used. The results reveal that all the variables under study have positive impact on the FDI inflow/ Development, but the Trade Openness, Trade Agreements and Literate human Resource have significant positive impact on FDI inflow. It is recommended on the basis of analysis results that Pakistan in order to attract more FDI inflow should educate the labor force, remove the barriers to entry in Pakistan for business and relax the terms and conditions for foreign trade.

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