Foreign direct investment inflows and labor productivity in Pakistan : a sector-wise panel cointegration analysis
Ayesha Serfraz
Developing economies tremendously benefit from FDI inflows since it leads to their economic growth. This study empirically analyzes the effects of sector-wise FDI inflows on respective sector-wise labor productivity for a panel of seven major sectors of Pakistan's economy covering time period of 1997-2016. In empirical analysis sector-wise FDI inflows has been used as an independent variable while sector-wise labor productivity is a dependent variable. Initial tests conclude that LSDV fixed effects model is the most appropriate test for the data being used for empirical analysis. Further tests confirm the existence of a long run Cointegration between these two variables. Wald test shows that a uni-directional short-run causality exists, running from sector-wise labor productivity to sector-wise FDI inflows. Pair-wise Granger-Causality test further shows that the effects of FDI inflows are not limited to one sector, rather there is an evidence of spillover effect from one sector to an-other. All empirical tests conclude that sector-wise FDI inflows positively affect sector-wise labor productivity in case of Pakistan.
Year of publication: |
September 2017
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Authors: | Serfraz, Ayesha |
Publisher: |
Hamburg : Zentrum für Ökonomische und Soziologische Studien, Universität Hamburg |
Subject: | Sector-wise FDI Inflows | Sectors-wise labor Productivity | Panel Cointegration | Pakistan | Auslandsinvestition | Foreign investment | Kointegration | Cointegration | Arbeitsproduktivität | Labour productivity | Panel | Panel study | Schätzung | Estimation |
Saved in:
freely available
Extent: | 1 Online-Ressource (40 Seiten) Illustrationen |
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Series: | Discussion paper / Zentrum für Ökonomische und Soziologische Studien. - Hamburg, ISSN 1868-4947, ZDB-ID 2602758-6. - Vol. 65 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Notes: | References: Seite 39-40 |
Other identifiers: | hdl:10419/168558 [Handle] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011716075