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Vol.10, No.3, August 2021. ISSN: 2217-8309 eISSN: 2217-8333
TEM Journal
TECHNOLOGY, EDUCATION, MANAGEMENT, INFORMATICS Association for Information Communication Technology Education and Science |
Role of Education and Financial Market Development in Attracting Foreign Direct Investment Inflows in Pakistan
Haider Mahmood, Muhammad Tanveer
© 2021 Haider Mahmood, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)
Citation Information: TEM Journal. Volume 10, Issue 3, Pages 1184-1189, ISSN 2217-8309, DOI: 10.18421/TEM103-23, August 2021.
Received: 08 April 2021. Revised: 13 July 2021.
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.
Keywords : FDI inflows, FMD, government spending on education, cointegration. |
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