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Foreign Direct Investmest in Pakistan post 9/11 - Dissertation Example

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Foreign Direct Investment in Pakistan post 9/11 Abstract The paper aimed at studying the trend of the Foreign Direct Investment in the country of Pakistan after the terror attack of 9/11. The main aim of the paper was to evaluate the impact of the incident on the Foreign Direct Investment of the country…
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Foreign Direct Investmest in Pakistan post 9/11

Download file to see previous pages... A regression analysis have been made in the paper to verify the relation between Foreign Direct Investment and the gross domestic product of the economy which is taken as the representative value of the economic growth . The regression result shows significant relationship between the two and they are interrelated. However, the foreign assistance was not the only reason behind the growth of the economy but the reforms undertaken by the government of the country also contributed significantly. The political stability and the fight against terrorism induce further investment in the country that led to further economic growth. Contents Page No. 1. Introduction 4-5 2. Background 6-11 3. Evidence and evaluation 12-16 4. Discussions 17 5. Conclusions 18 Appendix Reference Introduction Pakistan is an economy that emerges as the ‘global Trouble maker’. The country has a regular veer between the civilian form of the government and the military form of government, as none of the two is confident and particularly inspired. The major cities of the country are Islamabad, Karachi, and Lahore. Besides these cities most of the remaining country always experience chaos more or less. The tribal area of the country that lies along the border of Afghanistan has always the military of the country wagging war against the Taliban that is the group of the militant fundamentalist. The province of Baluchistan that covers almost half of the area of the country provides the home of another insurgency. Severe to all of these most of the young men of the country are being trained at the radical schools of Islam under the most named Taliban leader and the most talked about citizen of the country Osama bin laden. Despite of all these, the country has one of the top performing stock markets for over the decade. It is the sixth largest country of the world in respect to the country’s population. The per capita GDP of the country in real terms is about 1250 dollars that makes one third of the population living below the poverty line and almost half of the population illiterate. This poverty rate of the country made it poorer than its counterpart in India and much backward than the booming economy of China. With the onset of the Twenty First century, the government of Pakistan tried implementing economic reform that attracted a huge amount of Foreign Direct Investment in comparison to the country’s gross domestic product. The economy of the country started growing at the rate of about 8.6% and maintaining an above targeted level of foreign exchange reserve and low level of fiscal deficit. The aid from the American government contributed a significant part behind the success of the economy of Pakistan, even after the attack of 9/11 after which the Pakistan government ended supporting the militant activities. After the incidence of September 11, Pakistan took the front line in the fight against terrorism and America soon continued supporting the country with capital assistance. Pakistan has always been an important recipient of foreign assistance from America .The relation between the two countries became more sort of a core-periphery. The foreign aid provided by America is used by Pakistan for its economical needs and the former serves its interest in the region through the assistance. The position of the country made America to widely and desperately depend on the support provided by Pakistan in ...Download file to see next pagesRead More
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