Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach
The objective of this study is to investigate the impact of foreign direct investment (FDI) and workers’ remittances on private savings of Pakistan. This study employs ARDL bound testing co-integration approach, rolling window analysis, Granger causality test, Toda and Yamamoto Modified Wald causali...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2015-12-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/JBEM/article/view/2590 |
| _version_ | 1831601605320900608 |
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| author | Syed Ali Raza |
| author_facet | Syed Ali Raza |
| author_sort | Syed Ali Raza |
| collection | DOAJ |
| description | The objective of this study is to investigate the impact of foreign direct investment (FDI) and workers’ remittances on private savings of Pakistan. This study employs ARDL bound testing co-integration approach, rolling window analysis, Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test. Results indicate the significant positive impact of FDI and workers’ remittances on private savings in the long and short run. Causality analyses confirm the bidirectional causal relationship of FDI and workers’ remittances with private savings. It is recommended that policy makers should form friendly policies to attract more FDI and workers’ remittances in the country which leads to increase private savings in Pakistan. This leads to increase more fund for financial intermediaries to increase domestic investment opportunities in the country. This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the impact of FDI and workers’ remittances on private savings of Pakistan by using the long annual time series data and applying more rigorous econometric techniques. |
| first_indexed | 2024-12-18T15:05:14Z |
| format | Article |
| id | doaj.art-3c76e934bf2d48ceba0c470c6d0e2a06 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-12-18T15:05:14Z |
| publishDate | 2015-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-3c76e934bf2d48ceba0c470c6d0e2a062022-12-21T21:03:47ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332015-12-0116610.3846/16111699.2013.792867Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approachSyed Ali Raza0IQRA University, Karachi-75300, PakistanThe objective of this study is to investigate the impact of foreign direct investment (FDI) and workers’ remittances on private savings of Pakistan. This study employs ARDL bound testing co-integration approach, rolling window analysis, Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test. Results indicate the significant positive impact of FDI and workers’ remittances on private savings in the long and short run. Causality analyses confirm the bidirectional causal relationship of FDI and workers’ remittances with private savings. It is recommended that policy makers should form friendly policies to attract more FDI and workers’ remittances in the country which leads to increase private savings in Pakistan. This leads to increase more fund for financial intermediaries to increase domestic investment opportunities in the country. This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the impact of FDI and workers’ remittances on private savings of Pakistan by using the long annual time series data and applying more rigorous econometric techniques.https://journals.vgtu.lt/index.php/JBEM/article/view/2590foreign direct investmentremittancessavingstime seriesARDL co-integrationPakistan |
| spellingShingle | Syed Ali Raza Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach Journal of Business Economics and Management foreign direct investment remittances savings time series ARDL co-integration Pakistan |
| title | Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach |
| title_full | Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach |
| title_fullStr | Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach |
| title_full_unstemmed | Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach |
| title_short | Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach |
| title_sort | foreign direct investment workers remittances and private saving in pakistan an ardl bound testing approach |
| topic | foreign direct investment remittances savings time series ARDL co-integration Pakistan |
| url | https://journals.vgtu.lt/index.php/JBEM/article/view/2590 |
| work_keys_str_mv | AT syedaliraza foreigndirectinvestmentworkersremittancesandprivatesavinginpakistananardlboundtestingapproach |