Impact of Terrorism on FDI Inflow in Pakistan- A Time Series Analysis
Author(s)
Download Full PDF Pages: 33-39 | Views: 772 | Downloads: 204 | DOI: 10.5281/zenodo.3456760
Abstract
Finance is needed to grow every sector of life. The internal finance can be raised through public saving, direct and indirect taxes, etc. while the external sources of finance include foreign direct investment and loans from the foreign and local lending institutions. Foreign direct investment is considered very important as an external source of finance as it has long term effects in both quantitative and qualitative terms and doesn’t need to be paid off back with heavy interest charges like in the case of loans. FDI plays a key role in bringing capital, advanced technology, skills transfer and increase standard of living in developing countries. Pakistan as a developing country needs a huge amount of finance for development and non-development expenditures. With its heavy budgetary deficits, the country took and is still taking loans from different lending institutions. The country didn’t focus on raising FDI in the starting decades, but then it realized the importance. Over the last two decades, Pakistan has also made significant efforts in increasing the flow of foreign investment. However, the country has suffered terrible terrorism after the 9/11 attacks which have also impacted the flow of investment in the country. Terrorism is the actions of the people who are working against the law and the government. The flow of investment a decade before and after the 9/11 terror attacks has been analyzed that had hit the country with massive terrorism disrupting the economic scenarioa
Keywords
Pakistan, FDI, Terrorism
References
i. Farooq M. Adil and Dr. Shahzad Islam, “Impact of Foreign Direct Investment and Some Other Factors on Economic Growth of Pakistan”, Journal of Law, Policy and Globalization, Vol.33, 2015, Pg#94.
ii. Lemi Adugna (2004), “Foreign Direct Investment, Host Country Productivity and Export: The Case of U.S. And Japanese Multinational Affiliates”, Journal of Economic Development, Volume 29, Number 1, June 2004, Pg#164.
iii. ibid, 97.
iv. Javaid Umbreen (2015), “Operation Zarb-e-Azb: A Successful Initiative to Curtail Terrorism”, South Asian Studies A Research Journal of South Asian Studies Vol. 30, No.2, pp. 43 – 58.
v. Contessi Silvio and Weinberger Ariel, “Foreign Direct Investment, Productivity and Country Growth: An Overview”, Federal Reserve Bank of St. Louis Review, March/April 2009, 91(2), pp. 61-78.
vi. Kastrati Selma Kurtish, “The Effects of Foreign Direct Investments for Host Country’s Economy”, European Journal of Interdisciplinary Studies, Vol. 5, Issue 1, 2013, Pg#37.
vii. Khan Ashfaque H. and Kim Yun Hwan, “Foreign Direct Investment In Pakistan: Policy Issues And Operational Implications”, Asian Development Bank, EDRC Report Series No. 66, 1999, Pg#3.
viii. Farooq Muhammad and Khan Zahoor, “Impact of Terrorism on Foreign Direct Investment and Key Indicators of Development in Pakistan”, City University Research Journal Volume 04, Number 01 January 2014 Article 04, Pg#56.
ix. Shahbaz Mian Awais, Javed Asifah, Dar Amina and Sattar Tanzeela “Impact of Terrorism on Foreign Direct Investment in Pakistan”, Archives of Business Research; Volume 1 Issue 1, Pg#4
x. Khan Rana Ejaz Ali and Nawaz Muhammad Atif, “Economic Determinants of Foreign Direct Investment in Pakistan”, J Economics, 1 (2), 2010: 99-104, Pg#99.
xi. Board of Investment of Pakistan, “Investment Policy 2013”, 2013, Pg#6.
xii. Board of Investment of Pakistan, “Foreign Direct Investment (FDI) Strategy 2013-17”, 2013, Pg#23.
xiii. Hooper Emma and Leguen Gabriel Reyes, “Sources of Tension in Afghanistan and Pakistan: A Regional Perspective”, CIDOB Barcelona Centre for International Affairs, 2014, Pg#8-9.
xiv. Pakistan Governance Forum, An Initiative of ‘The Researchers’, Edition X, Volume 5, 2014, Pg#3.
xv. Ahmar Monis, “Strategic Meaning of the China-Pakistan Economic Corridor”, The Institute of Strategic Studies, 2015, Pg#35
xvi. Board of Investment, “Foreign Investment”, Pakistan at a Glance, 2016.
Cite this Article: