Impact of Foreign Portfolio Investment on the Development of Pakistan

Cite this:
Najaf, K., & Najaf, R. (2016). Impact of Foreign Portfolio Investment on the Development of Pakistan. Journal of Business Management and Economics, 4(6), 37–41. https://doi.org/10.15520/jbme.2016.vol4.iss6.203.pp37-41
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Abstract

The purpose of this study to examine the impact of foreign portfolio investment on the growth of Pakistan during the period of 2006 to 2015.In this paper, we have used the time series data and applied the ordinary least square model for determining the relationship between dependent and independent variables. The Independent variables are namely foreign exchange rate, market capitalization, growth rate, trade degree of openness and inflation rate. These variables are showing the inflows of foreign portfolio investment. Our results are showing that market capitalization, degree of openness and GDP have the significant relationship with the foreign direct investment. On the other side, inflation rate has the insignificant relationship with foreign direct investment. Therefore; it is being going to suggested that government of Pakistan should focus on the risk free environment.

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