FOREIGN DIRECT INVESTMENT IN PAKISTAN: TRENDS AND RELATIONSHIP WITH TECHNOLOGY TRANSFER

Abstract

This study is based upon examining an empirical relationship between Foreign Direct Investment (FDI) inflows and technology transfer in case of Pakistan. In addition, the study also highlights the trends of FDI inflows in various sectors. The model, which has been, constructed uses time series data of 38 years starting from 1970 to 2008. All econometric tests have been applied using EVIEWS. The empirical findings indicate a strong positive relationship between FDI inflows and technology transfer. Moreover, it also leads to domestic innovation and R&D projects in the long run.