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Impact of Foreign Capital Inflow on Economic Development of Pakistan: An Empirical Perspective

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Empirical analysis reveals positive impact of FDI and remittances on GDP in Pakistan, suggesting need for policy reform.

Long-term effects of FDI and remittances significantly boost GDP growth in Pakistan.
Johansen cointegration confirms lasting relationship between capital flows and economic development.
Weak short-term changes pointed out by ECM highlight need for sustained policy interventions.
Government reforms in development policies can enhance productivity and attract more investments.

Yousaf et al. (2025) studied this question.

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