Abstract

The foreign and domestic investments have a significant contribution towards economic development for developing and developed economies especially for underdeveloped economies. The primary objective of this study is to investigate the causal connection between domestic and foreign private investment along with its impact on economic growth of Pakistan. Moreover, time-series data has been used from 1980 to 2017 and autoregressive distributed lags (ARDL) method is implied for the data analysis perspective. The long-run findings indicate that foreign private investment has a negative and insignificant impact on economic growth, whereas, domestic investment shows a statistical significance but positive impact on Pakistan economy. The short-run dynamic designates that both domestic and foreign private investment is significantly and positively associated with the growth rate. Whereas, error correction term (ECT) is correcting the disequilibrium of data 42.7% on annual basis. Finally, F-test shows that the overall model of this study is statistically significant.

摘要

国内外投资对发展中和发达经济体，特别是欠发达经济体的经济发展做出了重大贡献。本研究的主要目的是调查国内外私人投资之间的因果关系及其对巴基斯坦经济增长的影响。此外，从 1980 年到 2017 年使用了时间序列数据，并且从数据分析的角度隐含了自回归分布滞后 (ARDL) 方法。长期的研究结果表明，外国私人投资对经济增长的负面影响不显着，而国内投资对巴基斯坦经济的影响在统计上显着而积极。短期动态表明国内外私人投资都与增长率显着正相关。而误差校正项 (ECT) 每年可校正 42.7% 的数据不平衡。最后，F检验表明本研究的整体模型具有统计学意义。