Open AccessNexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistan
Author(s) -
Hummera Saleem,
Malik Shahzad Shabbir,
Syed Ali Raza Shah,
Jalal Shah
Publication year - 2021
Publication title -
irasd journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2709-6742
pISSN - 2709-6734
DOI - 10.52131/joe.2021.0302.0043
Subject(s) - nexus (standard) , foreign direct investment , poverty , poverty reduction , causality (physics) , economics , development economics , developing country , investment (military) , international economics , macroeconomics , economic growth , political science , politics , physics , embedded system , law , computer science , quantum mechanics
The key objective of this paper is to examine the direct and causal association between foreign direct investment (FDI) and the reduction of poverty in Pakistan. Poverty reduction is the fundamental task and issue for developing economies like Pakistan. This study uses annual data set from 1987 to 2018 and implies the ARDL method for data analysis. The data has been taken from economic surveys of the Federal statistics house (FSH) of Pakistan. The finding shows the bidirectional causality between poverty and FDI. The outcome of this study also reveals that the causal effects of FDI on reducing poverty are stronger than poverty reduction effects on FDI.
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