Lecture 12

Topic : The Impact of the Foriegn direct Investment.

Submitted by : Saira Tabassum. Reg # : 283-FE/MS(Eco)2/F-11) & Nayyab. Reg # : (284-FE/MS(Eco)2/F-11)

Date : 08-05-2013

Summary

It is a discussion based lecture where Dr. Asad Zaman discuss boy’s assignments and give them suggestions regarding the gap of the articles and their importance and relevance. I have named this lecture “The impact of the FDI”. Basically in this lecture FDI is the major component which discussed. It has been seen that what is the impact of the FDI in poverty reduction, and also seen its impact on the economic growth. Different articles have different gap like the impact of the FDI is noted by the government but not conduct the research likewise FDI does not directly affect the poverty etc. There are two types of relationship that is strong relationship like GNP and Consumption and weak relationship like rainfall and consumption. When we put too many variables and omit important variables than we will get biased results. In Pakistan FDI is a very small item. If we compare the growth before 1990’s when there were no FDIs and after 2000’s when there is lots of FDI’s than we can see that growth varied because everything varied like investment, exports, government political situation etc. as we can see that if the relationship of FDI and GNP is weak than we cannot isolate the effects due to the weak relationship. For this we need to look at countries other than Pakistan. It has been claimed that labor force has positive impact on growth because evidences showed that coefficient of capital and labor significant. Likewise different authors do different claims in their articles with evidence.

Presentation file atteched.