Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan

The purpose of this study is to find out the impact of Terrorism on FDI inflow in Pakistan as well as other variables such as economic growth, market size, trade openness and infrastructure. Using a simple regression model to estimate time series, annual data from 2001 to 2016, the study concludes...

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Main Authors: Asad Ullah, Asfandyar Rahim, Mohammad Daud Ali, Shah Raza Khan, Syed Arshad Ali Shah
Format: Article
Language:English
Published: Shaheed Zulfikar Ali Bhutto Institute of Science and Technology 2021-06-01
Series:JISR Management and Social Sciences & Economics
Subjects:
Online Access:https://jisrmsse.szabist.edu.pk/index.php/szabist/article/view/50
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author Asad Ullah
Asfandyar Rahim
Mohammad Daud Ali
Shah Raza Khan
Syed Arshad Ali Shah
author_facet Asad Ullah
Asfandyar Rahim
Mohammad Daud Ali
Shah Raza Khan
Syed Arshad Ali Shah
author_sort Asad Ullah
collection DOAJ
description The purpose of this study is to find out the impact of Terrorism on FDI inflow in Pakistan as well as other variables such as economic growth, market size, trade openness and infrastructure. Using a simple regression model to estimate time series, annual data from 2001 to 2016, the study concludes that market size, economic growth, and trade openness have a significant positive relationship with FDI. At the same time, the result shows that Terrorism and infrastructure has a significant negative relationship with FDI. This empirically builds up the way that Terrorism is a real threat to FDI and economic development of the economies of Pakistan. The empirical outcomes of the study of Terrorism confirmed the way that Terrorism based oppression has harmed the economic prosperity of Pakistan and has debilitated FDI inflows during the sample period. Therefore, Pakistan will take to measures the investment environment in this area. Government strategy makers should consider the situation of Terrorism, instability and lawfulness circumstance to decrease the risk of investors and to ensure their investment ability to host FDI.
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1998-4162
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spelling doaj.art-f1f81a50df704398873f7cdc497fa5432023-04-14T10:30:54ZengShaheed Zulfikar Ali Bhutto Institute of Science and TechnologyJISR Management and Social Sciences & Economics2616-74761998-41622021-06-0118110.31384/jisrmsse/2020.18.1.9Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of PakistanAsad Ullah0Asfandyar Rahim1Mohammad Daud Ali2Shah Raza Khan3Syed Arshad Ali Shah4 Department of Management Sciences, Bacha Khan University Charsadda, PakistanDepartment of Management Sciences, Bacha Khan University Charsadda, PakistanDepartment of Management Sciences, University of Haripur, PakistanDepartment of Business administration Iqra National University, Peshawar, PakistanDepartment of Management Sciences, Bacha Khan University Charsadda, Pakistan The purpose of this study is to find out the impact of Terrorism on FDI inflow in Pakistan as well as other variables such as economic growth, market size, trade openness and infrastructure. Using a simple regression model to estimate time series, annual data from 2001 to 2016, the study concludes that market size, economic growth, and trade openness have a significant positive relationship with FDI. At the same time, the result shows that Terrorism and infrastructure has a significant negative relationship with FDI. This empirically builds up the way that Terrorism is a real threat to FDI and economic development of the economies of Pakistan. The empirical outcomes of the study of Terrorism confirmed the way that Terrorism based oppression has harmed the economic prosperity of Pakistan and has debilitated FDI inflows during the sample period. Therefore, Pakistan will take to measures the investment environment in this area. Government strategy makers should consider the situation of Terrorism, instability and lawfulness circumstance to decrease the risk of investors and to ensure their investment ability to host FDI. https://jisrmsse.szabist.edu.pk/index.php/szabist/article/view/50TerrorismFDIPakistanEconomic GrowthMarket size
spellingShingle Asad Ullah
Asfandyar Rahim
Mohammad Daud Ali
Shah Raza Khan
Syed Arshad Ali Shah
Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
JISR Management and Social Sciences & Economics
Terrorism
FDI
Pakistan
Economic Growth
Market size
title Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
title_full Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
title_fullStr Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
title_full_unstemmed Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
title_short Impact of Terrorism on Foreign Direct Investment: An Empirical Analysis of Pakistan
title_sort impact of terrorism on foreign direct investment an empirical analysis of pakistan
topic Terrorism
FDI
Pakistan
Economic Growth
Market size
url https://jisrmsse.szabist.edu.pk/index.php/szabist/article/view/50
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AT shahrazakhan impactofterrorismonforeigndirectinvestmentanempiricalanalysisofpakistan
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