Foreign Direct Investment: A Stimulus of Poverty Reduction

The present study was done to determine the impact of foreign direct investment on the poverty reduction in the Pakistan. The present study was also done to determine the effect of foreign direct investment on the per capita income, GDP, and labor market in the context of Pakistan. The data of the study was conducted on the previous five years records on the poverty ratio in Pakistan. Statistical analyses like correlation and regression test were applied to analyze the data. The results of the study showed that the almost all the variables have significant relationship with each other. Similarly the results of regression analysis showed that he FDI has significant negative relationship with the poverty reduction in Pakistan (t = - 2.618, p = 0.047). Further advantages and disadvantages were discussed in the discussion head. After that the study implications and limitations of the study were discussed. Lastly, suggestions are provided about the poverty reduction in Pakistan in the conclusion head of the study.