An attempt is made in this study
to determine the major indicators
of the inflow of FDI into Pakistan economy. Data
from the time period 1985 to 2019 was used in this
research. The level of stationary was checked
through Augmented Dickey Fuller and Philips
Perron tests. Using the analysis of the
Autoregressive Distributed Lag (ARDL), it is
identified that GDP, Inflation, Annual Average
Exchange Rate and population Growth have a
positive (significant) effect on FDI. Moreover, the
empirical results also identified a negative but
significant effect of financial development on FDI.
1-Mujib Ur Rahman Demonstrator, Department of Economics, Abdul Wali Khan University, Mardan, KP, Pakistan.2-Wisal Ahmad Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.3-Muhammad Faizan Malik Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
Foreign Direct Investment; Autoregressive Distributed Lag (ARDL) Model, GDP