IMPACT OF KSE ON BETTERMENT OF THE ECONOMIC IMAGE OF PAKISTAN

Abstract

rrpose: The purpose ofthe study is to examine the role ofKarachi Stock Exchange (KSE) in making the positive image ofPakistan’s economy. After facing my economic downfall, now it’s a revival ofPakistan’s economy with respect to positive developments in different sectors ofthe economy. This changing scenario created a need to do a research, that what developments took place in KSE and Pakistan’s economy. S-'inpie: Time series data from 2000-2015 data has used in this study. There are four independent variables foreign direct investment (FDI), private investment (PI), market capitalization (MC), market index (MI) and one dependent variable Gross domestic Product (GDP) ofthe study. For analysis Regression method is used. Findings: The study finds a positive relationship of(GDP) with (FDI), (PI), (MC), while a negative relationship between GDP and (MI). GDP is one ofthe important benchmark of economic growth. Regression analysis showed that $1 change in FDI, MC, MI, and PI will change the GDP by $0,527, $0,552, $ 0.558, $ 0.518 respectively. Practical Implications: Though since 2005 Pakistan’s GDP’s average increment is 5% with good performance ofKSE, still there is so much to do to change it further. To give a new life to economic growth, it’s an ultimate requirement to encourage investors in Pakistan. For this, it’s necessary to change Pakistan’s image from corrupt terrorist place to transparent and secure place to invest. The study will create a better understanding regarding the long-run relationship of economic growth and role ofKSE.