The Two-Gap Model suggests that the Poor countries have to rely on the foreign capital inflows (FCI) to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign capital inflows like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. So, UDC’s (including Pakistan) have to rely on the Foreign aid, Debt FDI and portfolio investments. The role of these external resources (FCI) always remains questionable. This paper analyzes the impact of the foreign capital inflow on GDP Growth in Pakistan during 1975-2004.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
1233.
Length: Date of creation: Jun 2006 Date of revision: Publication status: Published in Journal of Independent Studies and Research (JISR) 1.5(2007): pp. 24-29 Handle: RePEc:pra:mprapa:1233
Find related papers by JEL classification: O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations O1 - Economic Development, Technological Change, and Growth - - Economic Development O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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