This study tries to investigate the inter-linkage between foreign trade and Foreign Direct Investment (FDI) in case of Pakistan. Annual data for the period 1985–2010 have been considered for eight major trading partners—Canada, France, Germany, Hong Kong, Japan, Saudi Arabia, UK and USA. The...

This paper analyses country-specific and industry-specific determinants of intra-industry trade (IIT) between Pakistan and other SAARC countries using panel data techniques. This paper also disentangles total IIT into horizontal and vertical IIT. The Vertical IIT is further divided into...

Capital flight from Pakistan has remained one of the major concerns of policy makers, mainly because of the nature of private capital outflows; that is, whereas private citizens hold a large amount of foreign assets, the country’s burden of foreign debt continues to grow. Capital flight over...

In recent years the gap between real exchange rate (RER) and nominal exchange rate (NER) has widened in Pakistan. A proper understanding of the determinants of real exchange rate can be extremely useful for the management of current account deficit. The results of this study show that the...