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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

Model Summaryb<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Model R R Square<br />

Adjusted R<br />

Square<br />

Std. Error of<br />

the Estimate<br />

Durbin-Watson<br />

1 .968 a .936 .934 394.40066 .808<br />

b. Dependent Variable: FDI Inflows ($ million)<br />

Table 6.2.1<br />

ANOVAb<br />

Model<br />

1<br />

Sum of<br />

Squares Df Mean Square F Sig.<br />

Regression 5.257E7 1 5.257E7 337.939 .000 a<br />

Residual 3577693.240 23 155551.880<br />

Total 5.614E7 24<br />

a. Predictors: (Constant), Market Capitalization<br />

b. Dependent Variable: FDI Inflows ($ million)<br />

Table 6.2.2<br />

Coefficientsb<br />

Standardized<br />

Unstandardized Coefficients Coefficients<br />

Model B Std. Error Beta T Sig.<br />

1<br />

(Constant) 54.675 97.210 .562 .579<br />

Market Capitalization .001 .000 .968 18.383 .000<br />

a. Dependent Variable: FDI Inflows ($ million)<br />

Tables 6.2.1, 6.2.2 and 6.2.3 provide the results for the single independent variable model and<br />

market capitalization is found to be an important predictor of the FDI inflows in Pakistan<br />

causing the change of 96.8% of dependent variable with its total change in the same direction.<br />

This model is also a good fit and explains 93.4% of variations in dependent variable i.e. FDI<br />

inflows in Pakistan.<br />

Our findings suggest that total foreign trade infrastructural facilities, inflation, exchange rate and<br />

market capitalization have a statistically significant influence on FDI inflows in Pakistan. GDP<br />

growth rate has negative and statistically insignificant relation with FDI inflows. Pakistan has<br />

faced fluctuating growth over the period under study and most of the foreign investment in<br />

Pakistan was towards army and social aids which has nothing to do with growth of economy.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 990

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