Purpose

The purpose of this paper is to explore the contending role of important external inflows on the economic growth of Pakistan economy. The main purpose behind focusing on Pakistan is that it is receiving significant inflows from different international sources such as International Monetary Fund, World Bank and Asian Development Bank.

Design/methodology/approach

The study adopted the autoregressive distributed lag cointegration approach for the purpose of exploring the long-run cointegrating relationship among the variables. As Pakistan Government had been implementing some major liberalization policies during 1990s, data from 1976 to 2018 is used to estimate the specified models to reflect the impact of the surge of foreign inflows occurring from that time. In addition, error correction model is estimated for examining the short-run relationships.

Findings

The findings revealed the significant role played by different inflows in accelerating the economic growth. According to results, in the long run, all inflows, for example, Foreign direct investment (FDI), debt, official developdment assistance and remittances, have influenced significantly and positively the economic growth. The two control variables such as inflation and employment level included in the model have also played their expected role in the growth process. In the short run, some of the variables such as remittances, FDI and inflation rate have lost their significance level while for debt, aid and employment level, the signs of their coefficients become reversed.

Practical implications

Based on the findings, the study suggests the policymakers of Pakistan economy to liberalize the economy and attract more inflows from the external sources to accelerate economic growth.

Originality/value

To the best of the authors’ knowledge, this is the first comprehensive empirical study on the role of foreign inflows in the process of economic growth in the context of Pakistan economy.

中文翻译：

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巴基斯坦的外资流入与经济增长：一些新见解

目的

本文的目的是探讨重要的外部流入对巴基斯坦经济增长的竞争作用。关注巴基斯坦的主要目的是从不同的国际来源（例如国际货币基金组织，世界银行和亚洲开发银行）获得大量资金流入。

设计/方法/方法

为了探索变量之间的长期协整关系，本研究采用自回归分布滞后协整方法。由于巴基斯坦政府在1990年代期间一直在执行一些主要的自由化政策，因此使用1976年至2018年的数据来估算特定模型，以反映自那时以来外国流入激增的影响。另外，估计纠错模型以检查短期关系。

发现

调查结果显示，不同的资金流入在加速经济增长中发挥了重要作用。根据结果​​，从长远来看，所有流入，例如外国直接投资，债务，官方发展援助和汇款，都对经济增长产生了积极的影响。模型中包含的两个控制变量，例如通货膨胀和就业水平，也在增长过程中发挥了预期作用。在短期内，诸如汇款，外国直接投资和通货膨胀率等变量已失去其显着性水平，而对于债务，援助和就业水平，其系数的符号却被反转了。

实际影响

根据调查结果，该研究建议巴基斯坦经济的决策者开放经济，并吸引更多来自外部的资金流入，以加速经济增长。

创意/价值

据作者所知，这是关于巴基斯坦经济背景下外国资本流入在经济增长过程中的作用的首次综合实证研究。