Foreign direct investment and telecommunications development are essential for the economic development of a country. Pakistan, although being an underdeveloped country, has managed to excel in the telecommunications sector by manifold since 2001. An increasing number of telephony and cellular subscribers along with the broadband and 3G/4G users, have created an enchanting market for foreign investors. The purpose of this study is to explain the casual relationship between foreign direct investment and economic factors that attract FDI in Pakistan. Among the many economic factors here is telecom infrastructure, market size and trade openness, whereas FDI is taken as the dependent variable. A time series analysis is carried out to determine the growth trend while an ordinary least square test is applied to determine the coefficient of correlation between the variables.The result of the study specifies a positive relationship is observed between the per capita GDP and openness to trade and influx of FDI.
Keywords : Foreign Direct Investment, Telecommunications Sector, Determinative Approach
Authored by :
(1) Babar Ali
Ph.D Scholar of Management Sciences, Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS) Quetta, Balochistan, Pakistan.
(2) Nagina Gul
Assistant Professor of Management Sciences, Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS) Quetta, Balochistan, Pakistan.
(3) Saba Aziz
Ph.D Scholar of Management Sciences, Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS) Quetta, Balochistan, Pakistan.
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