Effect of FDI, R & D, and High-Tech Exports on Real Gross Domestic Product (GDP) of Pakistan and Canada over the Period of 1982-2011

Document Type: Original Research


1 College of Economics And Management Huazhong Agricultural University of China

2 Government Degree College, Madyan Swat, Pakistan

3 Government Degree, College Madyan Swat, Pakistan


Innovation is coming from new Knowledge, and new Technology. The author select these two countries because Canada has a very strong innovative economy, while Pakistan is not so strong. The study concludes that foreign direct investment, R&D, and High-tech exports have a positive impact on economic growth, and the results show a significant positive impact on GDP, in the case of Canada. While in Pakistan this influence is not significant due to some internal problems that Pakistan faces like a low rate of domestic investment, political instability, less investment in higher education. Therefore, the comparison can be useful in adapting Canada’s innovation policy for Pakistan.


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