Inward Foreign Direct Investment: A Case Study of Pakistan

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Abstract

The purpose of this study is to identify and analyze the methods for increasing the volume of Inward Foreign Direct Investment (FDI) in Pakistan. Two different approaches are investigated: firstly, identifying the main barriers to investing in Pakistan, and secondly, examining the key success factors (KSFs) of the top FDI recipients in the world. Both parametric and non-parametric statistical analyses are applied. The study findings provide guidance to the implementation of common KSFs for increasing inward FDI. The paper discusses cultural barriers in developing markets for investors’ collective performance, the consequence and significance of cultural barriers in emerging markets, and the requirement for social adaptation for successfully attract inward FDI in developing counties. This paper identifies and proposes suggestions for resolving the internal problems of Pakistan’s investment climate that act as impediments to increased FDI volume.

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