Abstract:
The fundamental reason for this study was to analyze the effect of Foreign Direct
Investment and inflation on performance of pharmaceutical industry from 2001 to 2012.
Secondary data from authorized websites of KSE, World Bank and State Bank had been
collected.
The yearly data was collected and variables that affect the performance were chosen.
Foreign Direct Investment (FDI), Inflation (INF) had been taken as independent variable
and for firm’s performance Return on Equity (ROE) as dependent variable had been
taken. Eviews software was used and tire Correlation, Descriptive statistics and
Regression used to find the relationship of the variables.
The study showed that foreign direct investment had a positive relation with return on
equity but no level of significance; whereas inflation showed negative relation with return
on equity 5% level of significance.
