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An Empirical Analysis of Impact of Foreign Aid on Economic Growth: The Case of Pakistan

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  • Muhammad Akram
  • Mahpara

Abstract

The objective of this study is to analyze the effects of foreign aid on economic growth of Pakistan. The time series data for the period 1980-2008 is used by applying OLS regression model and two diagnostic methods namely Breusch-Pagon and Durbin-Watson tests. Results depict that foreign aid is insignificantly related to the economic growth to Pakistan for short-run and long-run. By excluding the foreign direct investment, results are significant but still a negative relationship exists. This study will help to government organizations by recognizing about the impact of foreign aid on economic growth.

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  • Muhammad Akram & Mahpara, 2011. "An Empirical Analysis of Impact of Foreign Aid on Economic Growth: The Case of Pakistan," Information Management and Business Review, AMH International, vol. 3(5), pages 235-241.
    • Handle: RePEc:rnd:arimbr:v:3:y:2011:i:5:p:235-241
    DOI: 10.22610/imbr.v3i5.939
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