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Can FDI and Tax on Producer Interrupt the Industrial Development: An ARDL Based Evidence from Pakistan

Year: 2025

Type: article

Abstract: Foreign Direct Investment (FDI) and Taxes on Producer (TP) are crucial to locate the industrial development of particularly the developing economies like Pakistan. This study is initiated to locate the joint effect of FDI and TP on producer on the industry value added. For the analytical purpose, the data was collected from 1980 to 2023. The regression technique of Autoregressive Distributed Lag (ARDL) is used to meet the objectives of the study. The results confirm long run relationship with the nonlinear relationship of FDI×TP and industrial value added. For the government, it is suggested to have a catharsis before announcing the taxation policy that is good for the industrial sector.

Source: Journal of Regional Studies Review

DOI: 10.62843/jrsr/2025.4a109

Authors: Khawaja Asif Mehmood, Fareeha Riaz, Sidra Ilyas, Farzana Munir, Sulaman Ali

Institutions: Bahauddin Zakariya University, National University of Modern Languages

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4412961735

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