Time Series Analysis of Role of Infrastructure in Growth of FDI

Foreign Direct Investment (FDI) has its major contribution in economic development of a country. It has been clear from Literature that Foreign Direct Investment (FDI) not only facilitates in capital formation but also a source of new technology development in a country. This study has been conducted to ensure the impact of Infrastructure on FDI with the help of time series analysis by taking Pakistan as a case. The data of 30 years collected from two major sources; World Bank and Ministry of Finance for the time period 1980 to 2013. The variables used for this research are FDI (dependant variable) and Infrastructure (independent variable) also includes proxy variables with independent variable i-e; ((Real Government Expenditure per real GDP), Market size (Real GDP per capital), Openness (Real trade share (Import – export) per capital), Human Capital (total real education expenditure)Growth of FDI