The Sectoral Composition of Foreign Direct Investment

The sectoral features and its relation to the rest of the economy essential to identify the potential impact of foreign direct investment on economic growth. Intuitively, potential linkage varies across the sectors and subsequently sector-wise influenced of foreign direct investment might show a discrepancy. A panel ARDL bound cointegration technique is used for empirical estimation. Then analyzed sector wise impact of FDI on economic growth in five countries i.e. geographically closed boundaries “Pakistan, India, Bangladesh Sri Lanka and China”, over the time of 2000 to 2015.