The macroeconomic impact of foreign capital inflows: a case study of Pakistan

Despite their shortcomings econometric models today are widely used both by government and industry because of the fact that they are both involved in some kind of planning and target-testing. In this context, this dissertation is an attempt to construct an open economy model for Pakistan economy, to investigate impact of foreign capital. Econometric models related to the Pakistan economy have been developed by many individual economists and institutes, e.g. PIDE model. Although these models provide a full useful background for the understanding of general or special problems of the Pakistan economy, none of them tackles the same problems we are interested in, that is impact of foreign capital inflows. [Continues.]