Impact of FDI on the Growth of Telecommunication Sector in Pakistan: Dictatorship vs Democracy
- 1 Department of Business and Management, University of London, London, UK
- 2 Department of Engineering, University College, London, UK
Abstract
Foreign direct investment is an essential element for economic development growth in all countries, especially developing countries like Pakistan. The last two decades have been crucial for all developing countries in the context of FDI inflow. This study examines the role of FDI in Pakistan’s telecommunication sector growth in the dictatorship regime from 2001-02 to 2007-08 and the regime of democracy from 2008-09 to 2018-19. There is a comparison of the role of FDI in Pakistan’s telecommunication sector in the regime of dictatorship and the regime of democracy. The telecommunication sector growth is measured by five variables: revenue, subscribers, teledensity, private investment, and the contribution to the national exchequer. Descriptive statistics, correlations, and regression analysis have been used to analyse the data. The results show that FDI has a very significant positive impact on the growth of Pakistan’s telecommunication sector in the dictatorship regime; however, in the regime of democracy, FDI impact is not significant. This study will be helpful for the Pakistani government as it attempts to design proper policies and revise similar policies for attracting more FDI in Pakistan’s telecommunication sector that were implemented in the dictatorship regime.
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