• FOREIGN DIRECT INVESTMENT, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: AN EMPIRICAL STUDY OF PAKISTAN

Ghawsodin Haidari

Abstract:
The purpose of this study is to examine the relationship among foreign direct investment, financial development and economic growth in Pakistan using time series data over the period from 1970 to 2016. ADF (1981) and PP (1988) unit root tests are used to check the stationary properties of the series, Johansen’s (1988) cointegration test is used to find the long-run equilibrium relationship among variables, Granger causality (1988) test is used to find the direction of long run relationship between variables.