| Foreign direct investment(FDI)through liberal economic policies has encouraged economic growth around the world.FDI is a critical aspect of economic development within a country.The industrial uprising endorsed the need for FDI,which further allows capitalpoor states to figure out real assets,including job creation,grow production capability,improve local labour skills over the transfer of high technology,and manage understands exactly-how the incorporation of the domestic economy with the global economy.The FDI not only provided capital,but it also shared and contributed to the local country industry by using advanced technology,such as innovation in existing products,high-level managerial skills,etc.As in Pakistan's case,there are many problems,such as poverty,low per capita income,internal and external political instability,inflation,corruption,poor law and order situation,infrastructure,and power shortages.These factors affect the economic growth in multiple forms such as FDI inflow and outflow,local investment environment etc.Considering the problem mentioned above,this thesis focuses on how Chinese investment influences Pakistan's economic growth and how this study will affect the quality of life,local business environment etc.,across Pakistan.For readers' convenience,the major contributions of each chapter in this thesis has been discussed clearly in the following manner;This thesis consists of 8 chapters.The first 3 chapters deal with the theoretical analysis,while the remaining 4 chapters retain the empirical analysis.The final chapter consists of the conclusion and recommendation of each empirical study.Apart from this,Chapter 1 covers the whole thesis's introduction,including motivation,purpose,aim,and objective.Chapter 2 is related to the theoretical background of the thesis.This chapter's important contribution is channelizing FDI,Dunning Eclectic Paradigm(DEP)and stakeholder theory.Chapter 3 contributes to Pakistan economic system.Furthermore,this chapter will also help us to comprehend the FDI impact on economic growth.Moreover,this chapter corresponds to the theoretical analysis of Chinese outward foreign direct investment(OFDI)under Belt and Road Initiative(BRI)and China-Pakistan Economic Corridor(CPEC)(??????).This chapter provides an explicit elaboration to BRI and CPEC in the economic mainstreams of Pakistan and China and spotlights statistical data about China Pakistan FDI.More specifically,this chapter based for all FDI data,which is used in our current research.Chapter 1 covers the whole thesis's introduction,including motivation,purpose,aim,and objective.Chapter 2 is related to the theoretical background of the thesis.This chapter's important contribution is channelizing FDI,Dunning Eclectic Paradigm(DEP)and stakeholder theory.Chapter 3 contributes to Pakistan economic system.Furthermore,this chapter will also help us to comprehend the FDI impact on economic growth.Moreover,this chapter corresponds to the theoretical analysis of Chinese outward foreign direct investment(OFDI)under Belt and Road Initiative(BRI)and China-Pakistan Economic Corridor(CPEC)(??????).This chapter provides an explicit elaboration to BRI and CPEC in the economic mainstreams of Pakistan and China and spotlights statistical data about China Pakistan FDI.More specifically,this chapter based for all FDI data,which is used in our current research.Chapter 4 of this dissertation further indicates a significant impact of international finance,technology,innovation on a firm's sustainable performance.This empirical research study examines the influence of access to domestic finance and international finance on sustainability performance with a mediating role of innovative performance and a moderating role of access to government support.Data were collected from 317 owners and managers of SMEs through structured questionnaires.The results indicate that access to domestic finance and international finance significantly contributes to sustainability performance and innovative performance.We found a partial mediating role of innovative performance between access to domestic finance and sustainability performance as well as between access to international finance and sustainability performance.Access to government support significantly moderates the relationship between access to domestic finance and innovative performance as well as between access to international finance and innovative performance.Practitioners and policymakers advised need to encourage national and international financial institutions and banks to facilitate SMEs by lending them funds for innovative activities and sustainability performance.Moreover,the government should support SMEs,so that they could contribute to economic growth and GDP.Implications are discussed.Chapter 5 deals with the empirical study pertaining to Chinese OFDI and(CPEC).Therefore,the underlying study attempts to analyze the impact of Chinese OFDI by using a quantitative approach based on primary data collection.Therefore,chapter 5attempts to analyze the impact of Chinese OFDI by using a quantitative approach based on primary data collection.The study's key findings suggest a major effect of the Chinese OFDI on economic growth in Pakistan by providing a stable condition for investment,construction of roads,dams,and industrial zones.In addition,creating jobs opportunities through proper investment in the special economic zone causing to reduce poverty and inflation,leading to a stable economic environment across Pakistan.Besides,it provides more opportunities for the logistics sector.In addition,political risk and stakeholder perception have a significant influence over the Chinese OFDI in Pakistan.Therefore,it is recommended for the policymakers to formulate clear and precise policies to ensure harmony in two-way investments instead of allowing Multinational Corporations MNCs to establish their monopoly in the host nation or just discouraging MNCs from investing in Pakistan.However,it observed that the local investors are worried about the longterm effect of MNCs,but still,they intend to welcome the Chinese enterprises to learn the new technique of production,to continue the survival in the rest of the world and conform to globalization.Besides,both environmental and labour regulations should be strictly administered,whereas the government should take some positive steps to reduce corruption within the host country.Furthermore,a serious step should be taken to develop a formidable transport and logistics network that pose challenges to the current global offerings and increase connectedness.It is also required to alter the stockholder perception towards FDI that plays a significant role in developing countries economic growth.Therefore,this chapter attempts to examine the effect of Chinese OFDI on Pakistan's economic growth by presenting the true picture of such a durable relationship to the rest of the world.Although Chinese OFDI provides indirect support to BRI projects,it sustains economic prosperity and stability worldwide.Chapter 6 of this thesis deal with the factors affecting China's Outward Foreign Direct Investment in Pakistan.Therefore,this study attempts to analyze the impact of Chinese outward foreign direct investment(OFDI)in Pakistan under CPEC using time series data.Therefore,the underlying study attempts to analyze the impact of Chinese outward foreign direct investment(OFDI)in Pakistan under CPEC using time series data.The stationarity was checked through Augmented dicky fuller tests and ARDL bounds test confirm long-run association among exchange rate,inflation,corruption,law & order situation,trade closeness,economic freedom,infrastructure,and Chinese outward foreign direct investment.The study conducted auto-regressive distributive lag(ARDL)for the short run and long run equilibrium covering annual time series data from 1990–2019.The empirical results indicate that exchange rates,inflation and corruption have negative and statistically significant effect on China outward FDI in the host country in longrun while law and order situation has insignificant association with OFDI.Rest of the covariates such control variables trade closeness and economic freedom do not contribute to OFDI.The findings further demonstrate that error correction term(ECT)is negative and highly significant at 1% level of significance.This is another indication of stable long-run association among the variables.The estimated ECT coefficient is-0.927,demonstrates that short term disequilibrium can be rectified at a speed of around 93 percent Thus,the Pakistan Government should keep up inflation rate normal in order to attract Chinese investment under the CPEC.Chapter 6 of this thesis deal factors affecting China's Outward Foreign Direct Investment in Pakistan.Therefore,the underlying study attempts to analyze the impact of Chinese outward foreign direct investment(OFDI)in Pakistan under CPEC using time series data.The stationarity was checked through Augmented dicky fuller tests and ARDL bounds test confirm long-run association among exchange rate,inflation,corruption,law & order situation,trade closeness,economic freedom,infrastructure,and Chinese outward foreign direct investment.The study conducted auto-regressive distributive lag(ARDL)for the short run and long run equilibrium covering annual time series data from1990–2019.The empirical results indicate that exchange rates,inflation and corruption have negative and statistically significant effect on China outward FDI in the host country in long-run while law and order situation has insignificant association with OFDI.Rest of the covariates such control variables trade closeness and economic freedom do not contribute to OFDI.The findings further demonstrate that error correction term(ECT)is negative and highly significant at 1% level of significance.This is another indication of stable long-run association among the variables.The estimated ECT coefficient is-0.927,demonstrates that short term disequilibrium can be rectified at a speed of around 93 percent Thus,the Pakistan Government should keep up inflation rate normal in order to attract Chinese investment under the CPEC.Finally,in chapter 7 of this thesis we find a relation between FDI and their impact on Pakistan economic growth.Therefore,this study documents to explore the determinants of economic growth in Pakistan by emphasizing the significant role played by the Chinese FDI.The study took GDP as a dependent variable while Chinese foreign direct investment,Inflation,trade openness,exchange rate,interest rate,remittance,and renewable energy consumption are used as explanatory variables in this study.This study employed time series data analysis to examine the relationship GDP and Chinese foreign direct investment,Inflation,trade openness,exchange rate,interest rate,remittance,and renewable energy consumption from 1990 to 2019.The study performed the ARDL bounds test and determined that the dependent and independent variables are linked in the long term.Furthermore,the Coint Eq(-1)is negative and noteworthy,which checks the long-run relationship between variables.According to the findings of the ARDL model,Chinese FDI has a substantial favorable effect on Pakistan's economic growth.Furthermore,the study finds strong evidence that there exists a positive and significant nexus between exchange rate.The results further revealed that the inflow of remittances contributes positively and statistically to economic growth.In addition,foreign exchange rate and economic growth are positively related.Moreover,the findings indicate that trade openness has been found statistically significant with economic growth in the long-run.while interest rate(IR)has a significant effect in the long run-on economic growth in Pakistan.Trade openness has been found statistically significant.As a result,various strategies are developed,as study shows that boosting exports and importing necessary inputs for higher production leads to economic growth.So much so that a rise in foreign exchange rates increases economic development by increasing total demand.This study provides significant implications to the policymakers,managers and investors.Policymakers would understand the importance of the major impacts and determinants of FDI revealed in the thesis by recommending positive steps in formulating such types of policies that encourage FDI.Such measures may include developing market size,making regulations more international trade-friendly.Further,steps could b taken to keep interest rates and inflation rates under control as these factors have been found to influence FDI.Generally,this thesis' s most important contribution is to comprehend the relationship between Chinese OFDI and its impact on Pakistan economic growth.By summarizing,the main contribution of this study is:First,this study contributes to international business literature and as well as International Business theory.Using Dunning OLI(DEP)with Stakeholder theory and FDI is the first major contribution of this study.Second,chapter 4 of our thesis is an model for upcoming studies.Due to novelty and high contribution of our study researchers and policy makers from all around the world,different scholars on research gate follow our work from top class universities such as Oxford and Cambridge,Leed and Nottingham University,adopt the model,questionnaires,contribution and suggestion of our study.Third,this study also contributes to the literature of BRI,CPEC,and Pakistan's economic system.This study opens a new gateway for the scholars who are working related to BRI,CPEC,and China-Pakistan FDI and its determinants.Until now the published work on google scholar from this thesis get 96 citations out of them 27 citation is from chapter 4.Fourth,this study also contributes to methodology,using primary and secondary data with different statistical tools and methods.The published work from this thesis until now get around 96 citation due to novelty and innovation.Fifth,this study has significant influences for researchers,policymakers,and top-level managers.Researchers can use the methodological approach to find relations between different variables and methods.Policymakers need to consider all the factors while making a policy.However,at the firm level,they need to adopt the management practices suggested by these studies. |
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