Impact of foreign capital inflows on household saving in Pakistan

Abstract

This study aims to analyze the impact of foreign capital inflows on household saving of Pakistan. Multiple Regression has been applied to predict the relationship between foreign capital inflows and household savings. The present study uses the data for the period of 1981-2010. The obtained results show that foreign direct investment (FDI), remittances (RT) are having positive and significant impact on household saving (HS) but foreign aid (FA) is having negative and insignificant impact on household saving, so it is recommended that if a developing country like Pakistan wants to increase the household saving it should give importance to FDI, RT and ignore FA with respect to household saving. © Euro Journals Publishing, Inc. 2012.