American Research Journal of Business and Management

The objective of this paper is to investigate the impact of foreign direct investment (FDI) on gross domestic product (GDP) in Pakistan from 2006 to 2010. The growth of gross domestic product (GDP) is also measured in this study. Multiple regression model is used to measure the association among gross domestic product (GDP,) foreign direct investment and Inflation. FDI and inflation (CPI) are independent variables and GDP is dependent variable. There is positive and significant connection between GDP and FDI but a negative and significant relationship found between GDP and inflation.