Micro Economics

May 20th, 2015
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Aberystwyth University
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Economics or Economics is the social science that studies the production, distribution, and consumption of goods and services.

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REPORT ON INVESTMENT IN PAKISTAN AND ITS EFFECT ON MACROECONOMICS INDICATORS IN DIFFERRENT DECADES.PREPARED BYMR. FARAZ SALEEMMR. MOHSINMR. UMAIR AFZALMR. SHOAIBAND MR.SAMEERMOHAMMAD ALI JINNAH UNIVERSITYTABLE OF CONTENTINTRODUCTIONA Brief Review of the 1950s, 1960s, and 1970sThe 1980sThe 1990sCOLLAPSED AND RESTORATION OF INVESTMENTDETERMINANTS OF PRIVATE INVESTMENTI- AgricultureII- ManufacturingIII- ServicesCONCLUSION1. INTRODUCTIONThe positive developmental role of domestic and foreign investment on economic growthin host countries is well documented in literature. Investment is usually directed in sectors that enjoy comparative advantage, thereby creating economies of scale and linkage effects and hence raising productivity. An important argument in favor of foreign investment is that it consists of a package of capital, technology management, and market access. For foreign investment, repayment is required only if investors make profit and when they make profit, they tend to reinvest their profit rather than remit abroad. Another benefit of foreign investment is a confidence building effect. While the local economic environment determines the overall degree of investment confidence in a country, inflows of foreign investment could reinforce the confidence, thereby contributing to the creation of a virtuous cycle that affects not only local and foreign investment but also foreign trade and production.

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