تلخیص
: This study examines the impact of sectoral foreign direct investment on
industrial economic growth of Pakistan, by means of Cobb-Douglas production function.
Three sectors were used namely manufacturing, construction, mining & quarrying for
panel data during the period of 1997 to 2011. This study used three standard panel
unit root tests; PP statistics panel unit root, ADF statistic, IPS panel unit root test.
Moreover, to test the co integration between the variables, three different types of test
were used for the panel co integration test based on Johansen fisher, Kao residual cointegration, Pedroni residual cointegration tests to find the long run relationship between
sectoral FDI and industrial economic growth of Pakistan and the. Results revealed that
sectoral FDI has positively and significantly affect the industrial growth of Pakistan.