About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

10 J.L. Pol'y & Globalization 46 (2013)
Impact of Foreign Direct Investment on Employment Level in Pakistan: A Time Series Analysis

handle is hein.journals/jawpglob10 and id is 49 raw text is: Journal of Law, Policy and Globalization www iiste.or g ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online) Vol.10, 2013 I 154 Impact of Foreign Direct Investment on Employment Level In Pakistan: A Time Series Analysis Malik Danish Habib' Saima Sarwar2* 1. Student, B.Sc Hons (Economics) 2. Lecturer, Goverrnent College University, Lahore, Pakistan E-mail of the corresponding author: Poleconomist9agmail.com Abstract The early 19th century and 20th century is marked by a salient feature of close association between the economic progress and political freedom. This close association led to the phenomenon of globalization. Poor countries seek help from the rich countries and they too help them because, they also get benefit. Foreign direct investment play a key role in economic progress and this has a direct impact on employment level in any economy. This study focuses the impact of foreign direct investment on employment level in Pakistan. Data time span is 1970-2011. The variables in the study are employment level, foreign direct investment, exchange rate and GDP per capita. The study uses Johanson Co-integration approach to analyze the long run relationship between the dependent and independent variables. The result shows the existence of long run relationship. Keywords: Employment, Investment, Multinational firms, Time Series 1. Introduction: Foreign Direct Investment plays a significant role in an economy. It not only provides job facilities to the country but also help in economic stability and economy's growth and development. In developing countries where domestic financial markets are not yet fully developed, foreign capital inflows play crucial role in the economy. Foreign Direct Investment serves as mean of expansion of business opportunities and it also provides employment opportunities and raises income of people. In Case of developing countries, foreign direct investment plays a vital role in development and economic growth of that country. In the past few decades it can be seen that trade liberalization led to significant increase in foreign direct investment and hence had a positive impact on the economic growth of developing countries, however history suggests that trade liberalization is not always beneficial for the country. This is how a country utilizes its resources that determines the fate of its development. Employment can be defines as state of being employed. There exist negative relationship between employment and poverty because they both move in opposite directions. This phenomenon of unemployment has got peace in last two or three decades. Developing countries are facing this severe problem and formulating policies to overcome the problem of unemployment. In recent years not only developing but developed countries have been trapped in vicious circle of unemployment. Exchange Rate also plays an important role in an economy's growth. Exchange Rate can be defined as value of one currency in terms of other currency. It can also be defined as the ratio between a unit of one currency and the amount of another currency for which that unit can be

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most