Impact of Foreign Capital Inflow on Economic Development of Pakistan: An Empirical Perspective

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Long-term effects of FDI and remittances significantly boost GDP growth in Pakistan.
Johansen cointegration confirms lasting relationship between capital flows and economic development.
Weak short-term changes pointed out by ECM highlight need for sustained policy interventions.
Government reforms in development policies can enhance productivity and attract more investments.

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Empirical analysis reveals positive impact of FDI and remittances on GDP in Pakistan, suggesting need for policy reform.

Yousaf et al. (2025) studied this question.

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