ISSN: 2308-7056 Mukthar, Akhtar & Naz (2017) 101 I www.irbas.academyirmbr.com November 2017 International Review of Basic and Applied Sciences Vol. 5 Issue.11 R B A S Foreign Direct Investment (FDI), Agriculture Rate (AGRI), Energy Consumption (EC) and Trade Openness (TO) Impact on Economic Growth of Pakistan: A Case Study of China Pakistan Economic Corridor (CPEC) UMAR MUKTHAR PhD Candidate: College of Economics and Management, Huazhong Agricultural University, Wuhan, P.R China Email: umarmukhtar312@yahoo.com MUHAMMAD NADEEM AKHTAR PhD Candidate: School of International Trade and Economics, University of International Business and Economics, Beijing, P.R China Email: nadeem.csc@hotmail.com NAJAF NAZ Lecturer Barani University Sahiwal Jail Road, Sahiwal, Punjab, Pakistan E-mail: najaf.naz81@gmail.com Abstract This research evaluates the determinants of economic growth for Pakistan. The research tries to analyze the nature of causality among economic growth (GDP), foreign direct investment (FDI), Agriculture Rate (AGRI), energy consumption (EC) and trade openness (TO) in Pakistan. It covers the period from 1976- 2013. The ADF unit root test is used to determine the order of integration of variables. While Johansen (1988) and Johansen and Juselius (1990) maximum likelihood estimation approach is applied to check the co-integration and finally VECM is used to check the short run correlations. Diagnostic test, impulse response function, variance decomposition and granger causality is also used to check autocorrelation and causality among those variables. Key Words: FDI, AGRI, EC, GDP, TO. Introduction FDI is a major sector for improvement of GDP of any country. FDI is usually realized, by a lot of worldwide organizations, politicians and economists, as a feature which improves host country financial growth, additionally the decision to the financial crisis of developing countries (Mencinger, 2003). Bibi, Ahmad & Rashid, (2014). Observed the outcome of TO and FDI on economic growth in Pak. They used time series data from 1980 to 2011 and they applied for data analysis ADF & PP to check stationary of these variables. However to check the LR and also check the SR Co-integration and DOLS. Results showed