RELEVANCE OF FOREIGN DIRECT INVESTMENT FOR SUSTAINABLE DEVELOPMENT IN PAKISTAN

This study aims to measure the sustainable development index (SDI) in Pakistan and to explore the role of foreign direct investment (FDI) for sustainable development (SD). For measuring SDI thirteen traditional indicators of SDI, are utilized. After normalizing each variable and considering its relationship with SD, the index is constructed by averaging. Then time series analysis from 1980-2016, is used to find out the relationship between FDI and SDI along with exploring the strength of the relationship by decomposing SDI into major components of economic, social and environmental. The study concludes that SD in Pakistan is not impressive while showing stagnant and volatile performance. It is further observed that relevance of FDI is slightly optimistic not only with SD but also with its components. This study also highlights that FDI could only be positive if utilized under controlled atmosphere of pro-sustainable public policies and affirms prudent utilization of FDI for SD. Disciplinary: Multidisciplinary (Economics, Financial Engineering, Environmental Policy/Management). (c) 2019 INT TRANS J ENG MANAG SCI TECH.