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Academy of IRMBR Volume  5, November, 2017
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Foreign Direct Investment (FDI), Agriculture Rate (AGRI), Energy Consumption (EC) and Trade Openness (TO) Impact on Economic Growth of Pakistan: A Case Study of China Pakistan Economic Corridor (CPEC)

This research evaluates the determinants of economic growth for Pakistan. The research tries to analyze the nature of causality among economic growth (GDP), foreign direct investment (FDI), Agriculture Rate (AGRI), energy consumption (EC) and trade openness (TO) in Pakistan. It covers the period from 1976-2013. The ADF unit root test is used to determine the order of integration of variables. While Johansen (1988) and Johansen and Juselius (1990) maximum likelihood estimation approach is applied to check the co-integration and finally VECM is used to check the short run correlations. Diagnostic test, impulse response function, variance decomposition and granger causality is also used to check autocorrelation and causality among those variables. Key Words: FDI, AGRI, EC, GDP, TO.

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