Foreign Direct Investmest in Pakistan - Dissertation Example

A regression analysis has 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 a significant relationship between the two and they are interrelated. However, foreign assistance was not the only reason behind the growth of the economy but the reforms are 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.

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 countries 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 waging 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 laded. Despite all these, the country has one of the top-performing stock markets for over the decade. It is the sixth-largest country in 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.