Title of article :
FACTORS AFFECTING PORTFOLIO INVESTMENT IN PAKISTAN: EVIDENCE FROM TIME SERIES ANALYSIS
Author/Authors :
CHAUDHRY, IMRAN SHARIF Bahauddin Zakariya University - Department of Economics, Pakistan , CHAUDHRY, IMRAN SHARIF The Women University, Pakistan , FAROOQ, FATIMA The Women University, Pakistan , FAROOQ, FATIMA Bahauddin Zakariya University - Department of Economics, Pakistan , MUSHTAQ, ARZOO Bahauddin Zakariya University - Department of Economics, Pakistan , MUSHTAQ, ARZOO The Women University, Pakistan
Abstract :
This study is an endeavour to establish the factors that affect the portfolio investment in Pakistan. Portfolio investment is one of the main components of private investment. Portfolio investment is helpful to fill the gap between savings and investment in Pakistan. Time-series annual data have been taken for the period 1981-2012. This study employs Autoregressive Model of partial adjustment with least-square method. Net Portfolio Investment (NPI) has been taken as dependent variable whereas market capitalization, weighted average rate of return on deposit, trade openness, broad money (M2), one period lagged dependent variable and Foreign Direct Investment (FDI) have been taken as independent variables. The study concludes that FDI has negative impact on NPI while all other variables are positively related to NPI. The Government of Pakistan should defend its financial sector from terrorism and its effects.
Keywords :
Net portfolio investment , Foreign direct investment , Market capitalization , Trade openness , M2 , Weighted average rate of return on deposit , Pakistan
Journal title :
Pakistan Economic and Social Review
Journal title :
Pakistan Economic and Social Review
