Paper

Topics: Macroeconomics, Investment, Foreign direct investment Pages: 13 (3972 words) Published: May 19, 2013
Research Tools And Techniques

Foreign Investment

Submitted to
Madam Uzma Naeem

Group Members
Khan Taimoor SP11-BBA-094
Zunair Rahman SP11-BBA-097
Shahzad Zeb SP11-BBA-084

Date
May 15, 2013
Table of Contents
Executive Summary3
Problem Statement3
Data Collection3
Flow Charts4.5,6
Introduction7
Background Information7
Literature Review……………………………………………………………………………………………………………………………8 References……………………………………………………………………………………………………………………..9 TheoraticalFramework………………………………………………………………………………………………………10 Hypothesis Testing…………………………………………………………………………………………………………10 Research Design………………………………………………………………………………………………………….11 Finding………………………………………………………………………………………………………………………12 Analysis Of Data…………………………………………………………………………………………………………12 Acknowledgement…………………………………………………………………………………………………………13

Executive Summary
This paper attempts to determine the impact of workers remittances on Pakistan economy using standard Keynesian macroeconomic model for the period 1959-60 to 1987-88. The results indicate a strong positive impact on GNP, consumption, investment and imports. It suggests that an increase of one million rupees in remittances has increased GNP by 2.43 million. Among other components of economy, the remittances indicated the largest impact on consumption and the smallest on private investment. Given recent development in Gulf, it suggests that the government should aim at efficient channeling of remittances into productive investment and sustain the inflow of remittances exploring new markets for manpower.

Problem Statement
‘’What are the factors that affect Foreign Investment?’’

Data Collection

In Pakistan , Board of Investment deals with the foreign investment i.e those who investment in Pakistan sitting outside Pakistan.

The Board of Investment (BOI) was established with broad based responsibilities of promotion of investment in all sectors of economy; facilitation of local and foreign investors for speedy materialization of their projects and to enhance Pakistan 's international competitiveness and contribute to economic and social

The BOI assists companies and investors who intend to invest in Pakistan as well as facilitates the implementation and operation of their projects. The wide range of services provided by BOI includes providing information on the opportunities for investment and facilitating companies that are looking for joint venture.  

The BOI acts as a focal point of contact for prospective investors, both domestic and foreign to provide them with all necessary information and assistance in coordinating with other Government Departments/Agencies.

Foreign Investment inflows in Pakistan ($Million)

Year| Greenfield Investment| Privatisation Proceeds| Total FDI| Private Portfolio Investment| 2001-02| 357.00| 128.00| 485.00| -10.00|
2002-03| 622.00| 176.00| 798.00| 22.00|
2003-04| 750.00| 199.00| 949.00| -28.00|
2004-05| 1,161.00| 363.00| 1,524.00| 153.00|
2005-06| 1,981.00| 1,540.00| 3,521.00| 351.00 |
2006-07| 4,873.20| 266.40| 5,139.60| 1,820.00|
2007-08| 5,276.60| 133.20| 5,409.80| 19.30|
2008-09| 3,719.90| 0.00| 3,719.90| -510.30|
2009-10| 2,150.80| 0.00| 2,150.80| 587.90|
2010-11 | 1,634.8| 0.00| 1,634.8| 344.5|
2011-12 | 812.6| 0.00| 812.6| (46.9)|
2012-13 (Jul-Mar.)| 621.9| 0.00| 621.9| 198.7|
Total| 23,960.8| 2,805.60| 26,766.4| 2,821.0|

Note: Pakistan’s Fiscal Year runs from 1st July till 30th June. 

Direct and Portfolio Investment ($ Million) 

Country| 2012-2013 (July- Mar.)|
 | Foreign Direct Invesment| FPI| Total|
| Inflow| Outflow| Net| | |
Australia| 26.1| -| 26.1| (15.5)| 10.5|
Austria| 34.7| -| 34.7| -| 34.7|
China| 76.4| 11.7| 64.7| 0.1| 64.7|
Finland| 4.7| 0.9| 3.8| -| 3.8|
Hongkong| 184.1| 1.6| 182.5| 47.2| 229.7|
Italy| 165.2|...

References: * Yousaf,M. ,Hussain,Z.,Ahmad,N. ,(2008). ‘Economic Evaluation of Foreign Dorect Investment in Pakistan’.Pakistan Economic and Social Review,46,1,(37-56).
* Al-Mutairi,N. ,(1993).’Exports and Pakistan Economic Development’.Pakistan Economic and Social Review,31,2,(134-146).
* Nishat,M. ,Bilgrami,N. ,(1991).’Impact of Migrant Worker Remittances on Pakistan Economy’’.Pakistan Economic and Social Review,29,1,(21-41).
* Chaudhary,M. ,Qaisarani,A. ,(2002).’Trade Instability,Investment and Economic Growth in Pakistan’.Pakistan Economic and Social Review,40,1,(57-73).
* Kapuria,V. ,(2007). ‘Economic Freedom and Foreign Direct Investment in Developing Countries’.The Journal of Developing Areas,41,1,(143-154).
* Aqeel,A. ,Nishat,M. ,Bilquees,M. ,(2004).’The Determinants of Foreign Direct Investment in Pakistan’.The Pakistan Development Review,43,4,(651-664).
* Khan,A. ,Khilji,N. ,(1997).’Foreign Direct Investment In Pakistan(Policies and Trends)’.The Pakistan Development Review,36,4,(959-985).
* Quazi,R. ,(2005).’ Effects of Foreign Aid on GDP Growh and Fiscal Behavior: An Econometric Case Study of Bangladesh’.The Journal of Developing Areas,38,2,(95-117)
* Sobhan,R
* Subrahmanian,K.,(1985).’ Foreign Technology in the Four Modernisations of China’.Economical and Political Weekly,20,24,(1050-1060).
* Pleava,J.,(1967).’ Some Structural Problems of Czechoslovak Foriegn Trade’.Soviet and Eastern Europen Foreign Trade,3,6,(3-31).
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