Impact of macroeconomic variables on the inflows of FDI and agriculture sector of Pakistan

Abstract

Pakistan is famous due to its agriculture sector, due to this reason we have analyzed the different determinants on the progress of FD I. For this purpose, we have taken data from the year 1998 to 2008 an applied the OLS model. We have taken, the results that trade and GDP both have a positive association with the FDI inflows and agriculture sector and Government debt and exchange rate has the negative relationship whereas inflation has the positive relationship. This paper suggests that government should make policies to for the promotion of agriculture sector.