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Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]

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  • Mohey-ud-din, Ghulam

Abstract

The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. But UDC’s (including Pakistan) don’t have the investment friendly policies. So, they have to rely on the Foreign aid and Debt rather than FDI and portfolio investments. The role of these external resources always remains questionable. This paper analyzes the trends and structure of the foreign aid in Pakistan during 1960-2002 and its role and effectiveness in the economic development in Pakistan.

Suggested Citation

  • Mohey-ud-din, Ghulam, 2005. "Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]," MPRA Paper 1211, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1211
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    File URL: https://mpra.ub.uni-muenchen.de/1211/1/MPRA_paper_1211.pdf
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    References listed on IDEAS

    as
    1. Ashfaque H. Khan & Lubna Hasan & Afia Malik, 1992. "Dependency Ratio, Foreign Capital Inflows and the Rate of Savings in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 843-856.
    2. Leff, Nathaniel H, 1969. "Dependency Rates and Savings Rates," American Economic Review, American Economic Association, vol. 59(5), pages 886-896, December.
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    Cited by:

    1. Rabia Butt & Attiya Yasmin Javid, 2013. "Foreign Aid and the Fiscal Behaviour of Government of Pakistan," PIDE-Working Papers 2013:96, Pakistan Institute of Development Economics.
    2. Fahmida Khatun & Syed Yusuf Saadat & Md. Kamruzzaman, 2019. "FINANCE FOR SDGs: Addressing Governance Challenge of Aid Utilisation in Bangladesh," CPD Working Paper 125, Centre for Policy Dialogue (CPD).
    3. Muhammad Azam & Yi Feng, 2022. "Does foreign aid stimulate economic growth in developing countries? Further evidence in both aggregate and disaggregated samples," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(2), pages 533-556, April.

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    More about this item

    Keywords

    Foreign capital inflows (FCI); Foreign Aid; Economic Development; Foreign Economic Assistance; Official Development Assistance (ODA); Foreign Debt Burden; Aid and Growth; Trends and Structure of Aid; Aid Effectiveness;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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