A Review of Foreign Direct Investment and Manufacturing Sector of Pakistan

Abstract

The objective of this study is to explore the insights of the literature on foreign direct investment (FDI) toward manufacturing industry in the context of developing economies. This paper examines and synthesizes existing theoretical and empirical literature on said issue. It first draws the overview of the FDI and manufacturing sector in Pakistan. Second, it identifies the literature based on the theoretical and empirical insights from the published literature. In addition, this article put light on theoretical methods that describes how/ why these methods work. Third, this article proposes three fruitful dimensions for further research. This paper contributes to the area of FDI and manufacturing sector growth by critically analyzing and synthesizing existing theory and research on FDI and growth of manufacturing sector.