Impact of FDI, Workers’ Remittances and Export on GDP
Keywords:
FDI, GDP, Workers, Remittances, and Export PerformanceAbstract
This study examines the effects of FDI (foreign direct investment) on export performance for a single country Pakistan, using 30 years data from a period 1981 to 2010. The ordinary least square estimation results indicate significant positive effect of terms of trade on economic growth. Furthermore, volatility of terms of trade has significant positive effect on economic growth. To test the robustness of initial results, sensitivity analysis has been performed using different additional variables, sample size and various proxies of volatility variable. The initial results were found robust despite the inclusion of various variables in the basic model and use of various proxies for volatility of terms of trade.
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