IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT OF PRIMARY SECTOR: EVIDENCE FROM PAKISTAN
The paper aims to determine the impact of foreign direct investment (FDI) on exports of the primary sector of Pakistan. Time series annual data sets from 1980-2015are taken from the World Bank (WDI) and Economic Survey of Pakistan. Stationarity of series has been tested through Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) tests. ARDL model has been applied to determine the longrun association among the variables. The study concludes that foreign direct investment significantly determines the export of primary commodities. It is suggested that policies could be made to attract FDI in the primary sector.
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