RAMIFICATIONS OF GOVERNANCE INFRASTRUCTURE AND FDI FLUX IN PAKISTAN

Abstract

The prominence of Foreign Direct Investment (FDI) to Pakistan is due to its positive macroeconomic fallouts. The factors that maneuver as impediment towards FDI are socioeconomic in nature. To deliberate such factors, this study is distinctive in context of incorporating governance infrastructure such as; political stability, quality of governance, and control of corruption for the period of 1980-2018. Autoregressive Distributed Lag was used to estimate the coefficient in varied time horizon. Findings concluded governance infrastructure to be significantly and positively affecting the flow of FDI. Thus, better handling of the same is essential so that the macroeconomic goals that are hindered due to lack of capital be fulfilled in ready course of time.