Impact of Foreign Direct Investment on Economic Development of Pakistan

Foreign Direct Investment (FDI) is a crucial substantial promoter for financial development in the unindustrialized nations. It promotes the economic development by motivating domestic investment, increasing human capital creation and by providing the technology transfer in the host states. Thus, the core aim of behind this research is to examine the effect of the foreign direct investment on economic development Gross Domestic Product of Pakistan. Time series data will be evaluated in this study over the period (1985–2017). The study uses multiple linear regression technique for the analysis of data. Our results suggest that model is significant and shows FDI has a progressive and important influence on the economic development of Pakistan. This research suggests that the local government has to develop strategies and plans in such a way that would encourage the efforts and funds being made for the betterment of a nation in the form of FDI.