Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size

Mushtaq Ahmad; Ferhan K. Ahmad; Muhammad Ali Nasir; Gulzar Khan

Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size

Mushtaq Ahmad, Ferhan K. Ahmad, Muhammad Ali Nasir, Gulzar Khan

Research output: Contribution to journal › Article › peer-review

Abstract

In continuation of the efforts to understand the dynamics of internal market, this study proposes Internal Absorption as an instrument for measuring market size for economies which confront large trade deficit over a longer period of time. The study empirically examines the impacts of Internal Absorption along with trade openness and gross private investment on FDI inflows in Pakistan. The ARDL approach to co-integration and ECM based on ARDL is used to test the existence of long run relationships among variables for the period 1976-2009. The result establishes strong positive relationship between Internal Absorption and FDI inflows in short as well as in the long run.

Original language	English
Pages (from-to)	400-410
Number of pages	11
Journal	Journal of Economics and Political Economy
Volume	2
Issue number	3
Publication status	Published - 1 Sep 2015
Externally published	Yes

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http://kspjournals.org/index.php/JEPE/article/view/386Licence: CC BY-NC

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title = "Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size",

abstract = "In continuation of the efforts to understand the dynamics of internal market, this study proposes Internal Absorption as an instrument for measuring market size for economies which confront large trade deficit over a longer period of time. The study empirically examines the impacts of Internal Absorption along with trade openness and gross private investment on FDI inflows in Pakistan. The ARDL approach to co-integration and ECM based on ARDL is used to test the existence of long run relationships among variables for the period 1976-2009. The result establishes strong positive relationship between Internal Absorption and FDI inflows in short as well as in the long run.",

keywords = "Foreign direct investment, Internal absorption, Trade openness, Private investment",

author = "Mushtaq Ahmad and Ahmad, {Ferhan K.} and Nasir, {Muhammad Ali} and Gulzar Khan",

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language = "English",

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T1 - Internal Absorption and Foreign Direct Investment Inflows

T2 - A new approach towards Market Size

AU - Ahmad, Mushtaq

AU - Ahmad, Ferhan K.

AU - Nasir, Muhammad Ali

AU - Khan, Gulzar

PY - 2015/9/1

Y1 - 2015/9/1

N2 - In continuation of the efforts to understand the dynamics of internal market, this study proposes Internal Absorption as an instrument for measuring market size for economies which confront large trade deficit over a longer period of time. The study empirically examines the impacts of Internal Absorption along with trade openness and gross private investment on FDI inflows in Pakistan. The ARDL approach to co-integration and ECM based on ARDL is used to test the existence of long run relationships among variables for the period 1976-2009. The result establishes strong positive relationship between Internal Absorption and FDI inflows in short as well as in the long run.

AB - In continuation of the efforts to understand the dynamics of internal market, this study proposes Internal Absorption as an instrument for measuring market size for economies which confront large trade deficit over a longer period of time. The study empirically examines the impacts of Internal Absorption along with trade openness and gross private investment on FDI inflows in Pakistan. The ARDL approach to co-integration and ECM based on ARDL is used to test the existence of long run relationships among variables for the period 1976-2009. The result establishes strong positive relationship between Internal Absorption and FDI inflows in short as well as in the long run.

KW - Foreign direct investment

KW - Internal absorption

KW - Trade openness

KW - Private investment

UR - http://kspjournals.org/index.php/JEPE/issue/view/40

M3 - Article

VL - 2

SP - 400

EP - 410

JO - Journal of Economics and Political Economy

JF - Journal of Economics and Political Economy

SN - 2148-8347

IS - 3

ER -

Internal Absorption and Foreign Direct Investment Inflows: A new approach towards Market Size

Abstract

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