This study evaluate the trends and different determinants of FDI in Pakistan and provide fine idea about some of the variable that influence FDI in Pakistan This research shows multivariate relationship of different economic and social variables with foreign direct investment (FDI). The objective of this study is to find relationship of different macro-economic and social variables (i.e. gross domestic product, discount rate, exports, consumer price index, terrorism, political freedom, exchange rate, and national saving) with foreign direct investment in case of Pakistan for a period of 1972 to 2008. Research is based on secondary data so the data have collected which is on yearly base .In the study We used “ordinary least square method” (OLS) for estimation, co integration technique and Granger causality test. Pakistan has received a huge amount of foreign direct investment inflow in 2007 and 2008 that are (5139.6, 5,410.20) million rupees respectively. The research concluded that Foreign Direct Investment (FDI) has decrease due to terrorism, economic instability and political risk in the last three year in the country
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