Advances in Economics and Business Vol. 2(6), pp. 223 - 231
DOI: 10.13189/aeb.2014.020602
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Impact of Exchange Rate on Foreign Direct Investment in Pakistan


Muhammad Bilawal , Muhammad Ibrahim *, Amjad Abbas , Muhammad Shuaib , Mansoor Ahmed , Iltaf Hussain , Tehreem Fatima
Bahaudin Zikria University, Bahadur Sub Campus, Layyah, Pakistan

ABSTRACT

Exchange rates have main role that affect the macroeconomics performance of any leading country. The objective of this research was to investigate whether uncertainty or fluctuations in exchange rate affects the macroeconomic in Pakistan. This Study was based on secondary and time series data. For this purpose 32 years old data of Exchange rate and FDI for the period of 1982 to 2013 was used and was collected from the website of State Bank of Pakistan. The tests of Correlation and regression analysis were applied through SPSS software to check the relationship between Exchange rate and FDI. The correlation results showed that there is positive significant relationship between Exchange rate and Foreign Direct Investment while in regression analysis the value of R-square = 0.679 which shows that the independent variable Exchange has 67% impact on dependent variable Foreign Direct Investment and research model is accurate. This research will help the mangers, related organization and future researchers to make or revise the further economic decisions.

KEYWORDS
Exchange Rate, Foreign Direct Investment

Cite this paper
Muhammad Bilawal , Muhammad Ibrahim , Amjad Abbas , Muhammad Shuaib , Mansoor Ahmed , Iltaf Hussain , Tehreem Fatima . "Impact of Exchange Rate on Foreign Direct Investment in Pakistan." Advances in Economics and Business 2.6 (2014) 223 - 231. doi: 10.13189/aeb.2014.020602.