Abstract
Foreign direct investment (FDI) is investment that serves the business interests of the
capitalist in an enterprise, which is in a different economy distinct from the investor's
country of origin. FDI plays an unusual and growing part in world market. It can provide
new markets and marketing channels, cheaper production facilities, access to new
technology, products, dexterity and financing for businesses. For a host country or the
foreign business which receives the investment, it can provide a source of state-of-theart technology, capital, processes, products, organizational technologies and management
skills, and as such can provide a strong drive to economic development. In recent years,
given rapid development and change in global investment approach, the definition has
been broadened to include the acquisition of a lasting management interest in a company
outside the investing company's home country. It may take many forms, such as a direct
acquisition of a foreign firm, construction of a facility, or investment in a joint venture
or strategic alliance with a local business with attendant input of technology, licensing
of intellectual property. It produces a positive result on economic growth in host countries.
Ironically, the presence of foreign companies in Pakistan predates the beginning of the
country itself. Foreign investment and trade from the world, policy makers should
consider the factors that attract multinational organizations to bring more investment
in the economy and channelizing the investment in production sector to increase the
turnover and employment. Inflows of investment in agriculture and textile sectors will
increase the efficiency of these sectors and will resolve the food crises and employment
issues in the economy
Nadeem Ahmed Shaikh, Dr. Ishaque Ahmed Ansari. (2011) Determinants of Foreign Direct Investment and its Statistical Analysis, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-09, Issue-2.
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