The impact of FDI on economic growth under foreign trade regimes: A case study of Pakistan

Abstract

FDI has been one of the defining features of the world economy over the past two decades. It has grown at an unprecedented pace for more than a decade. Liberalisation of the foreign trade regime is an integral part of growth of FDI. This paper investigates the trade policy regime followed by Pakistan that has influenced significantly both the amount of inward FDI received and economic growth. Our findings maintain that the Bhagwati Hypothesis Emphasis on both export promotion policy and inward FDI on the part of the government can get the desired result of economic growth.