Abstract
The Two-Gap Model suggests that the Poor
countries have to rely on the foreign capital inflows (FCI)
to fill the two Gaps: Import-Export Gap and the SavingsInvestment Gap. There are many forms of the foreign
capital inflows like FDI (Foreign Direct Investment),
External loans & Credit, technical assistance, Project &
non-project aid etc. So, UDC’s (including Pakistan) have
to rely on the Foreign aid, Foreign Debts, FDI and
portfolio investments. The role of these external resources
(FCI) always remains questionable. This paper analyzes
the impact of the foreign capital inflow on GDP Growth
in Pakistan during 1975-2004.
Ghulam Mohey-ud-din. (2007) Impact of Foreign Capital Inflows (FCI) On Economic Growth in Pakistan [1975-2004] , Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-05, Issue-1.
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