Impact of terrorism, gas shortage and political instability on FDI inflows in Pakistan


  • Khakan Najaf Department of Accounting & Finance, University of Lahore, Islamabad Campus, Pakistan
  • Shumraiz Ashraf Department of Accounting & Finance, University of Lahore, Islamabad Campus, Pakistan


Terrorism, OLS techniques, ARMA, FDI inflows, Gas shortage


In the paper the prime objective of this study is to verify that foreign direct investment has crucial role in the progress of developing and under developing country. This paper is trying to expose that foreign direct investment is the reason of remove unemployment, bridging the gap between both saving and investment, latest technology, GDP of all the nations. We have applied annual time series dataset to prove it empirically. In this study we have taken data from 1981 to 2011 and applied the OLS and ARMA techniques. In the main paper in which we have analyzed the impact of gas shortage, political instability, terrorism on the foreign direct investment in Pakistan. As anticipated, this study has proves that there is negative relationship between political instability and terrorism whereas gas generation has positive with FDI inflows in Pakistan. There is positive relationship between control variables and FDI inflows in Pakistan, in the other side exchange and interest rate have negative relationship between FDI inflows.


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How to Cite

Najaf, K. ., & Ashraf, S. . (2016). Impact of terrorism, gas shortage and political instability on FDI inflows in Pakistan. Scientific Journal of Pure and Applied Sciences, 5(3), 390-397. Retrieved from