Role of Education and Financial Market Development in Attracting Foreign Direct
Investment Inflows in Pakistan
Role of Education and Financial Market Development in Attracting Foreign Direct
Investment Inflows in Pakistan
Author(s): Haider Mahmood, Muhammad TanveerSubject(s): ICT Information and Communications Technologies
Published by: UIKTEN - Association for Information Communication Technology Education and Science
Keywords: FDI inflows; FMD;government spending on education; cointegration
Summary/Abstract: This paper has investigated the role of education and Financial Market Development (FMD) on the Foreign Direct Investment (FDI) inflows in Pakistan from 1970-2019. In the short run, education has a positive effect on FDI inflows. 1% increasing of government's spending on education would increase 0.361% of FDI inflows in Pakistan. Moreover, the FMD has a positive effect on FDI inflows in the short run. 1% increasing FMD may increase 0.0496% of FDI in the short run. Both education and FMD are supporting the FDI inflows in the short run. Comparatively, education shows a larger effect on FDI than that of FMD in the short run. However, FMD and government spending on education could not affect the FDI inflows in the long run. This paper recommends supporting education and financial markets to attract FDI inflows in Pakistan.
Journal: TEM Journal
- Issue Year: 10/2021
- Issue No: 3
- Page Range: 1184-1189
- Page Count: 6
- Language: English
