Impact Of FDI And Institutions On Export Performance Of Pakistan
Author: Waleed Zulfiqar

Institutions of any country has key role in attracting foreign direct investment and increasing export performance from country. The purpose of this study is to investigate role of foreign direct investment and institutions in expansion of export performance of Pakistan. Study utilize time series data of Pakistan from 1984 to 2019 and source of data for study is World Development Indicators and ICRG. By using ARDL Bound test co-integration method study found that there is significant and positive role of both foreign direct investment and Institution of Pakistan in proliferating the export performance of country. Foreign direct investment inflow in country results in technology spillover in Pakistan and also transfer of advance knowledge and skills of production. This advance technology and production knowledge boost both productive capacity and volume which give country enough production to increase exports. Institutions are found to have key role in creating business environment for foreign investors as better institutions are perform the role of regulatory authority for foreign direct investment in term of expending exports. Moreover study found that institutions also have direct impact on international trade activity of the country. Unfortunately institutional conditions in Pakistan is not according to world’s standards which is the reason of low FDI volume and less export performance. Study suggest to take necessary measures to improve institutional quality of country and also to make Board of investment (BOI) department more effective in attracting foreign investors. Supervisor:- Dr. Nazia BiBi

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Supervisor: Nazia Bibi

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