FDI Flows to Pakistan Economy in Dynamic Econometric Model

The study is designed to conduct indepth investigations into the nature and magnitude of FDI flows, their characteristics and their attraction factors to Pakistan economy in dynamic econometric model. The study highlights the degree of attraction of cost related, investment environment, development strategy factors with ownership, internalization and other political risk, business conditions, historical trends of investment factors on FDI flows. The inter relationship macro, domestic and foreign capital variables are investigated. The purpose is to determine the causal relationship and to understand as to what extent the FDI flows react to developmental characteristics of the country.