IDEAS home Printed from https://ideas.repec.org/a/src/jafeec/v7y2021i3p587-596.html
   My bibliography  Save this article

Empirical Analysis of the Macroeconomic impact of Foreign Aid on Pakistan Economy (1972-2014)

Author

Listed:
  • Bibi, Hifsa
  • Amin, Amjad
  • Alam, Danish

Abstract

Purpose: Although Pakistan receives large quantity of foreign aid, like other developing countries, but it remains more dependent on foreign assistance for economic development since independence.& This situation has commenced a vigorous discussion on aid-growth effectiveness.Methodology: This research work evaluates the macroeconomic impact of foreign aid on Pakistan economy by using secondary data. The empirical analysis is based on ARDL cointegration approach after testing for unit root, using the data for the period 1972-2014.Findings: The findings suggest there is no long run relationship between Foreign aid and Economic Growth. However, there exists negative short run relation between Foreign aid and Economic Growth of Pakistan.Implications: Based on the study findings, the study recommends that government of Pakistan should find alternate sources of financing as the relation between foreign aid and economic growth is found negative and insignificant. The in depth analysis of the study made it evident that allocation of aid to those sectors of the economy which really needs development, is more productive, provided that the country should use aid funds in the right direction, as corruption less economy prosper more rapidly.

Suggested Citation

  • Bibi, Hifsa & Amin, Amjad & Alam, Danish, 2021. "Empirical Analysis of the Macroeconomic impact of Foreign Aid on Pakistan Economy (1972-2014)," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(3), pages 587-596, September.
    • Handle: RePEc:src:jafeec:v:7:y:2021:i:3:p:587-596
    DOI: http://doi.org/10.26710/jafee.v7i3.1855
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1855/1202
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jafee.v7i3.1855?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:jafeec:v:7:y:2021:i:3:p:587-596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rabia Rasheed (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.