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Has Aid Helped in Pakistan?

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  • Shahrukh Rafi Khan

    (Sustainable Development Policy Institute, Islamabad.)

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    Abstract

    This paper has a two-fold objective: first, to examine the terms on which Pakistan receives aid and whether its debt situation is sustainable, and second, to examine the impact of aid and debt on economic growth. It is found that there is little encouraging that can be said about how the terms on which Pakistan has received aid over time have changed, and its current debt situation is not sustainable. Also reported is the analysis done elsewhere which shows that aid has a negative (Granger) causal impact on GDP, and aid has a robust negative impact on economic growth after controlling for supplyside shocks. We provide various reasons for this negative association.

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    File URL: http://www.pide.org.pk/pdf/PDR/1997/Volume4/947-957.pdf
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    Bibliographic Info

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 36 (1997)
    Issue (Month): 4 ()
    Pages: 947-957

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    Handle: RePEc:pid:journl:v:36:y:1997:i:4:p:947-957

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    1. A. R. Kemal, 1992. "Self-Reliance and the Implications for Growth and Resource Mobilisation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 1101-1110.
    2. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
    3. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, vol. 39(1), pages 3-30.
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    Cited by:
    1. Matthew McCartney, 2011. "Pakistan, Growth, Dependency, and Crisis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(Special E), pages 71-94, September.

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