The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index

Faheem Ur Rehman; Muhammad Asif Khan; Muhammad Atif Khan; Khansa Pervaiz; Idrees Liaqat

doi:10.1016/j.ribaf.2019.101129

The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index

Faheem Ur Rehman
, Muhammad Asif Khan
, Muhammad Atif Khan^*
, Khansa Pervaiz
, Idrees Liaqat

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

49 Scopus citations

Abstract

This study explores the causal, linear, and nonlinear relationship between sectoral level foreign direct investment (FDI) inflows and infrastructure (transport, telecommunication, financial, and energy sectors) of Pakistan. Granger causality and autoregressive distributed lag (ARDL) approach to cointegration; suggest the presence of long-run bidirectional causality between infrastructure and FDI, while the nonlinear ARDL affirms the asymmetries in this connection. Results suggest that sectoral FDI inflows are important to enhance infrastructure in various sectors, both in the short and long-run. As improving infrastructure is vital to attracting FDI, results will be particularly useful to policymakers concerned about emerging markets.

Original language	English
Article number	101129
Journal	Research in International Business and Finance
Volume	52
DOIs	https://doi.org/10.1016/j.ribaf.2019.101129
State	Published - Apr 2020
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2019

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure
SDG 17 Partnerships for the Goals

Keywords

ARDL
Infrastructure
NARDL
Pakistan
Sectoral FDI

ASJC Scopus subject areas

Business, Management and Accounting (miscellaneous)
Finance

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Cite this

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title = "The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index",

abstract = "This study explores the causal, linear, and nonlinear relationship between sectoral level foreign direct investment (FDI) inflows and infrastructure (transport, telecommunication, financial, and energy sectors) of Pakistan. Granger causality and autoregressive distributed lag (ARDL) approach to cointegration; suggest the presence of long-run bidirectional causality between infrastructure and FDI, while the nonlinear ARDL affirms the asymmetries in this connection. Results suggest that sectoral FDI inflows are important to enhance infrastructure in various sectors, both in the short and long-run. As improving infrastructure is vital to attracting FDI, results will be particularly useful to policymakers concerned about emerging markets.",

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note = "Publisher Copyright: {\textcopyright} 2019",

year = "2020",

month = apr,

doi = "10.1016/j.ribaf.2019.101129",

language = "English",

volume = "52",

journal = "Research in International Business and Finance",

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T1 - The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan

T2 - Using a new global infrastructure index

AU - Rehman, Faheem Ur

AU - Khan, Muhammad Asif

AU - Khan, Muhammad Atif

AU - Pervaiz, Khansa

AU - Liaqat, Idrees

PY - 2020/4

Y1 - 2020/4

N2 - This study explores the causal, linear, and nonlinear relationship between sectoral level foreign direct investment (FDI) inflows and infrastructure (transport, telecommunication, financial, and energy sectors) of Pakistan. Granger causality and autoregressive distributed lag (ARDL) approach to cointegration; suggest the presence of long-run bidirectional causality between infrastructure and FDI, while the nonlinear ARDL affirms the asymmetries in this connection. Results suggest that sectoral FDI inflows are important to enhance infrastructure in various sectors, both in the short and long-run. As improving infrastructure is vital to attracting FDI, results will be particularly useful to policymakers concerned about emerging markets.

AB - This study explores the causal, linear, and nonlinear relationship between sectoral level foreign direct investment (FDI) inflows and infrastructure (transport, telecommunication, financial, and energy sectors) of Pakistan. Granger causality and autoregressive distributed lag (ARDL) approach to cointegration; suggest the presence of long-run bidirectional causality between infrastructure and FDI, while the nonlinear ARDL affirms the asymmetries in this connection. Results suggest that sectoral FDI inflows are important to enhance infrastructure in various sectors, both in the short and long-run. As improving infrastructure is vital to attracting FDI, results will be particularly useful to policymakers concerned about emerging markets.

KW - ARDL

KW - Infrastructure

KW - NARDL

KW - Pakistan

KW - Sectoral FDI

UR - https://www.scopus.com/pages/publications/85076854800

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DO - 10.1016/j.ribaf.2019.101129

M3 - Article

AN - SCOPUS:85076854800

SN - 0275-5319

VL - 52

JO - Research in International Business and Finance

JF - Research in International Business and Finance

M1 - 101129

ER -

The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index

Abstract

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

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