I previously wrote about the ways telecom sector has contributed to the economy of Pakistan and how various benefits have spread in other business sectors of the country. The qaumi khazana (government revenue) has also done very well because of tax and other revenues. Here’s a snapshot (source: Deloitte) of the additional revenues which mobile telecom companies pay to PTA. Given this solid cash flow to the telecom authority it is even more important for them to safeguard
Foreign Direct Investment in Telecommunication Sector
of Pakistan: An Empirical Analysis
Shumaila Hashim, Akhtar Munir
This study examines evidence concerning the empirical
relevance between foreign direct investment (FDI) attraction in telecommunication sector of Pakistan and its determinative effects. In this paper, we focus on assessing the relative
significance of the factors that may attract FDI in
telecommunication sector by using regression analysis for
quarterly data (2000Q1-2006Q4). FDI in telecommunication
sector of Pakistan was taken as dependent variable. Market
size, Competition, Literacy rate, Foreign trade and Per capita income were taken as independent variables. All variable
showed their positive and significant impact on FDI in
telecommunication sector of Pakistan.
During 1980s, utility of telecommunication sector was globally recognized and it was considered as the pre-requisite for the economic growth. Thus gradually in all countries various telecom sector regulatory reforms like opening of boundaries for foreign direct investment (FDI), liberalization and privatization were introduced. Japan has low foreign direct investment in the past few decades especially in telecom sector but now this trend has changed. Share of FDI in telecommunication sector of the country was 0.9%, 16.2% and 12.3% in 1989-97, 1998-2003 and 1989-2003 respectively. There...