THE IMPACT OF DEBT AND EQUITY BASED CAPITAL INFLOWS ON MACROECONOMIC PERFORMANCE OF PAKISTAN

On the three sectors of Pakistan economy, there indeed is a comparatively differing impact of external debt to that of foreign direct investment. In addition, comparatively between external debt and foreign direct investment, external debt not only has a dominant and significant but also a deteriorating impact across, almost all, the three macroeconomic sectors of Pakistan's economy as defined inthis study. Conversely on a direct comparison basis between FDI and external debt, FDI has minimal and mostly insignificant impact on all the three macroeconomic sectors of Pakistan's economy. The methodology of this study comprises of Structural Equation Modeling analysis that is based on an extensive and rigorous literature review