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Research Paper | Economics | Malaysia | Volume 8 Issue 8, August 2019

The Role of Foreign Direct Investment to Strengthen the Economy in Developing Countries (A Comparative Study of Kazakhstan and Pakistan)

Mohamed Hersi | Farrukh Khan | Sara Ramzani

Abstract: Foreign Direct Investment often argues as one of the most essential and integral parts of the country’s economic growth in past few decades however there is a lot of complication in this regard and this is not as straight forward as it sounds. The research aims to illustrate the relationship between Foreign Direct Investment inflows in the economic growth of Pakistan and Kazakhstan. Various studies pointed out that Foreign Direct Investment inflow has a positive impact which leads to the economic growth of developing countries while in some cases it negative and null. The multiple linear regression methods were used to identify the improvement of the country economy by Foreign Direct Investment. As the results of this study indicated there is a highly significant impact of Foreign Direct Investment in the economic growth of developing countries, and increasing the inflow of Foreign Direct Investment will lead to an increment and growth of the country economic.

Keywords: Foreign Direct Investments, Economic Growth, Developing Countries

Edition: Volume 8 Issue 8, August 2019,

Pages: 2178 - 2181

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