THE IMPACT OF DOMESTIC SAVINGS, INFLATION, DOMESTIC CREDIT TO PRIVATE SECTOR AND GOVERNMENT EXPENDITURE ON EDUCATION ON FOREIGN DIRECT INVESTMENT IN PAKISTAN

Abstract

This study examines impact of inflation, and government spending in educational domestic savings, domestic credit to private sector on foreign direct investment by using the savings, domestic lending to the private sector, and government investment in education all have a strong favorable influence on FDI, according to the findings. Inflation, on the other hand, is strong negatively related with FDI. In order to accomplish socioeconomic changes in Pakistan, more appropriate and effective complementary policies must be devised and executed in the short term. We can sector ARDL bound testing over the span of 1990-2020. Domestic support both the traditional ano wider arguments for the favorable influence of all these variables on the influx offoreign investment in Pakistan based on empirical results. The study suggests that policy makers should have more trade friendly policies in conjunction with growth enhancing and inflation controlling policies to achieve the major task of development as an explicit key macroeconomic objective in Pakistan.