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Role of Foreign Aid in Employment Generation: A Case Study of Pakistan

Author

Listed:
  • Anam Tanveer

    (The Islamia University of Bahawalpur, Pakistan.)

  • Muhammad Mehran Latif

    (Pakistan Institute of Development Economics, Islamabad, Pakistan.)

  • Maryum Ziafat

    (International Islamic University, Islamabad, Pakistan.)

Abstract

TForeign aid is very important for the development process of a country. The main aim objective of this study was to empirically investigate the relationship between foreign aid and employment generation in Pakistan. Secondary data was collected from 1980-2015 for time series data analysis. World Development Indicators and the Pakistan Economic Survey were the main sources of data (World Bank, 2020). ARDL model used for the data analysis. Employment level was used as a dependent variable, and foreign aid, Economic Growth (GDP), Gross Fix Capital Formation (GFCF), government expenditure, participation rate, and exports were used as independent variables. Form the results of the study, and it was clear that foreign aid and employment level have a positive and significant association in Pakistan. The study concludes that foreign aid has positively contributed to employment generation.

Suggested Citation

  • Anam Tanveer & Muhammad Mehran Latif & Maryum Ziafat, 2019. "Role of Foreign Aid in Employment Generation: A Case Study of Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 103-112, December.
    • Handle: RePEc:ani:irdjoe:v:1:y:2019:i:2:p:103-112
    DOI: https://doi.org/10.52131/joe.2019.0101.0009
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    References listed on IDEAS

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    Cited by:

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    2. Simplice A. Asongu & Joel Hinaunye Eita, 2023. "Promoting renewable energy consumption in Sub-Saharan Africa: how capital flight crowds-out the favorable effect of foreign aid," Working Papers of the African Governance and Development Institute. 23/048, African Governance and Development Institute..

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    More about this item

    Keywords

    Foreign Aid; Employment; Economic Growth; Gross Fix Capital Formation; ARDL;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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