Impact of Economic Growth on Investment Level in Pakistan

This study is carried out to explore the impact of economic growth on investment level in Pakistan. The data for the study is obtained from economic survey of Pakistan Federal Bureau of statistics and publications of state bank of Pakistan from the period of 1991 to 2009. By the use of ordinary least square method the regression results shows the impact of economic growth on investment level. The main findings of the study also fulfill the main objectives of the study. Economic growth has significant role to affect investment level in Pakistan because all independent variables of the study are statistically significant. In Pakistan 71% variation in investment level is due to included explanatory variables of the research work. GDP growth national savings and exports have positive relationship with investment while inflation and unemployment rate have inverse impact on investment.