Open AccessAn Empirical Analysis of Impact of Foreign Aid on Economic Growth: The Case of Pakistan
Author(s) -
Muhammad Wasim Akram,
Mahpara
Publication year - 2011
Publication title -
information management and business review
Language(s) - English
Resource type - Journals
ISSN - 2220-3796
DOI - 10.22610/imbr.v3i5.939
Subject(s) - foreign direct investment , ordinary least squares , economics , watson , time series , government (linguistics) , econometrics , macroeconomics , statistics , computer science , mathematics , linguistics , philosophy , natural language processing
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.