THE IMPACT OF TERRORISM, POLITICAL INSTABILITY AND INFLATION ON THE FOREIGN DIRECT INVESTMENT INFLOW. A CASE OF PAKISTAN.

Abstract

Purpose- The basic and main theme of Ibis study is to find out the relation and impact of Terrorism, Political Instability and Inflation on the Foreign Direct Investment Inflow of Pakistan with the help of the economic data of time period 2003 - 2014 used for the study. The purpose of study is to find out that how independent variables (Terrorism, Political Instability and Inflation) diminish the dependent variable (FDI Inflow) in the scenario of Pakistan’s point of view Methodology/sample- The method of Regression is used to find out the impact ofterrorism, inflation, and political instability on FDI inflow by using the data of past twelve years of Pakistan’s economy. Findings- The findings of the study shows that there are insignificant negative relation of terrorism, political instability and inflation to the FDI inflow which shows the inverse relation according to the research. Practical Implications- The Terrorism, political instability, inflation and FDI inflow is the main body for the development and implication of foreign direct investment in the country