Impact of sector-specific FDI on sector-specific employment in Pakistan

The study wants to find the impact of sector-specific foreign direct investment on sector-specific employment in Pakistan. Data on primary, secondary and tertiary sectors are used for this purpose. ADF, PP and Zivot-Andrews unit root tests are applied to find the level of integration. ARDL and its error correction model are used to find the long run and short run relationships. The study finds the long run relationships in case of all sectors. The short run relationships are found in case of secondary and tertiary sectors. Sector-specific FDI has a positive and significant impact on sector-specific employment in case of secondary and tertiary sectors.