Telecommunication Infrastructure and Foreign Direct Investment in Pakistan: An Empirical Study

1
Nayyra Zeb
Nayyra Zeb
2
Fu Qiang
Fu Qiang
3
Muhammad Shabbir
Muhammad Shabbir
1 Chongqing University, Chongqing, China

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This paper explores the role of infrastructure availability, particularly with respect to telecommunication in stimulating Foreign Direct Investment (FDI) in Pakistan. Mobile cellular subscription is taken as a proxy variable for infrastructure along with market size, labor force and trade openness as explanatory variables. The study covers the time period from 1990 to 2012 based on the fact that mobile cellular service introduced in 1990s in Pakistan for the first time. Johansen test of Co-integration has been used to check the long run relationship between the variables and then ordinary least square technique has been applied to estimate the coefficients of all the variables. The results of empirical analysis indicate the positive significant effect of infrastructure in attracting FDI to Pakistan.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Nayyra Zeb. 2014. \u201cTelecommunication Infrastructure and Foreign Direct Investment in Pakistan: An Empirical Study\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B4): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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July 3, 2014

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This paper explores the role of infrastructure availability, particularly with respect to telecommunication in stimulating Foreign Direct Investment (FDI) in Pakistan. Mobile cellular subscription is taken as a proxy variable for infrastructure along with market size, labor force and trade openness as explanatory variables. The study covers the time period from 1990 to 2012 based on the fact that mobile cellular service introduced in 1990s in Pakistan for the first time. Johansen test of Co-integration has been used to check the long run relationship between the variables and then ordinary least square technique has been applied to estimate the coefficients of all the variables. The results of empirical analysis indicate the positive significant effect of infrastructure in attracting FDI to Pakistan.

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Telecommunication Infrastructure and Foreign Direct Investment in Pakistan: An Empirical Study

Nayyra Zeb
Nayyra Zeb Chongqing University, Chongqing, China
Fu Qiang
Fu Qiang
Muhammad Shabbir
Muhammad Shabbir

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