“The Moderating Role of GDP on the Relationship Between Foreign Direct Investment and Exports in Pakistan”

Abstract

           This research paper has been written down for the purpose of knowledge creation and to contribute in the existing knowledge about the effect of FDI on Exports and this effect is significantly moderated by GDP in Pakistani environment.Because FDI considered as a impulse for economic development in developing countries like Pakistan.FDI is often enhanced the exports through capital inflows, technological transfer,linkage of different markets which is the most effective relationship remain unexplored. This research fills an important gap that how fluctuations in GDP influence the effectiveness of FDI for the purpose of increasing exports.Using secondary data from the sources of World development indicators (WDI) base on the last 15 years (2009-2023) this study employs quantitative methods to see the impact of FDI on Exports ,with the moderating role of GDP.This research models shows that FDI has a significant positive impact on exports and GDP improve this relationship when it reaches on higher level.The findings provide valuable policies and directions for policymakers and stakeholders, by enabling them to formulate targeted strategies that optimize the role of FDI in driving export-led growth in Pakistan. The study concludes with policy recommendations aimed at enhancing the effectiveness of FDI in Pakistan’s export performance, ultimately contributing to sustainable economic development of our country.Deductive approach is used in this paper we travel from general to specific context.Data is analyzed on Spss all null hypothesis rejected which indicates that our research proves the impact of FDI on Exports and moderated by GDP.