Tracing the Joint Effect of FDI and Ease of Doing Business on Pakistan’s Industry Value Added

Foreign Direct Investment (FDI) and Ease of Doing Business (EDB) are the integral components to fasten the industrial progress of the developing and developed economies. This study is carried out to find the joint impact of FDI and EDB on the industrial value added of Pakistan. Moreover, the internal factors which are foresighted to distress industrial growth such as domestic credit to private sector and access to electricity are also traced for their imprints on industrial value added. The time series analysis was carried out with the secondary data from 1980 to 2023. The Autoregressive Distributed Lag (ARDL) model is incorporated to find the regression estimates. The results confirm significant and positive long run impacts of these variables on industrial value added of Pakistan. The joint effect of FDI and EDB is signified for long run impacts. The short run findings are evident for negative effect on industry valued added. As a policy norm, the state government needs to in-focus the long run policy initiatives to facilitate FDI and EDB together with a protracted base of credit to private sector in line with accessibility of electricity for narrating a healthier industrial progress.