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

Muhammad Akram and Mahpara

Information Management and Business Review, 2011, vol. 3, issue 5, 235-241

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.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:3:y:2011:i:5:p:235-241

DOI: 10.22610/imbr.v3i5.939

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