Unveiling the Economic Nexus: How Foreign Direct Investment, Gross Domestic Product, and Energy Consumption Shape Pakistan's Export Trajectory?

Abstract

High population growth in developing countries is generating an extraordinary rise in demand for energy, urban development, and agricultural infrastructure. Global environmental obligations will be challenging when fulfilling growing demands. These issues promote unfavorable settings and major constraints in turning the economy into a green growth economy. This shows the countless stakeholders in the economy's accountability towards sustainability. This study investigates the dynamic nexus between FDI, GDP, energy consumption, and exports in Pakistan for the period 1991-2022 by using the NARDL approach. The findings demonstrate a statistically significant positive relationship between FDI and GDP, indicating that increased FDI drives GDP growth. By addressing gaps in cross-sectional analyses, this research enriches existing literature and highlights opportunities for comparative studies with other developing countries.

Key Words: FDI, Energy Consumption, Exports, GDP, NARDL, Pakistan