Impact of Us Aid on Pakistan Economy

Topics: Pakistan, Benazir Bhutto, Zulfikar Ali Bhutto Pages: 29 (9418 words) Published: December 8, 2012
“Impact of United States Aid on Pakistan Economy”

A thesis
Presented to
The faculty of
Management Sciences
Bahria Institute of Management &Computer Sciences, Karachi

In Partial Fulfillment
of the Requirements for the
Degree Master in Business Administration

This research paper analyzes the effects of United States aid on the economic growth of Pakistan. The study uses annual data of last ten year for the period 2002-2012. The research study is conduct to check weather united state aid has any impact of positive or negative on Pakistan economy. This hypothesis was tested using panel data series through finance/Statics software SPSS. The role of US aid in promoting economic growth is a debatable issue and remains unsettled at both theoretical and empirical levels because some independent variables having positive beta and only three independent variables have negative beta. Pakistan has received a substantial amount of US aid since its Independence in 1947 but little improvement has been observed in its socio-economic development. The results show negative and insignificant effects of United States aid on the growth at the aggregate as well at the disaggregate level. The findings suggest that domestic investment, export growth, and inflows of foreign direct investment are important contributors in enhancing economic growth in Pakistan. While the findings further suggests that, the results of this study also indicate that foreign aid has mixed effects on economic growth in developing countries like Pakistan.

First of all I would like to thank Allah. They provided me with wisdom and intellectual capacity to complete and this Thesis. Then I would like to thank our parents for providing with opportunity of learning. I am thankful from the core of my heart to my supervisor, Sir Asif Shamim (Faculty, Bahria University) for his valuable support, knowledge, encouragement and guidance from the very start up to the final level that make me able to develop an understanding of the subject matters. He has taken pain to go through the thesis and make necessary correction as and when needed. I would also thank my Institution and my faculty members without whom this Project/Thesis would have been a distant reality. I am also thankful to my parents who supported me to the maximum and provide me the full strength to fulfill the goal.

I truly dedicated this work to all my family members, without whom I could not able to pursue this thesis with full dedication. I am in awe of praying from my parents and my younger sister and above all my Allah who granted me an opportunity to work with such a graceful person, Sir Asif Shamim in such a learning environment of Bahria University. I dedicated this work to the whole team of Bahria University Research Centre for putting the efforts in playing a key role to enhance the knowledge of students towards thesis and making them prepare for PhD program.

Types of Foreign Aid to Pakistan:1
Problem Statement2
Significance of the Study3
Scope of the Study3
Research methods and techniques:6
Respondents of the study:6
Research instrument:7
Sources of the data:7
Treatment of the data:7
Empirical arrangement of model:7
Dependent variable (endogenous):8
Independent variables (exogenous):8
Chapter # 3: Review of related literature & Studies16
Article # 01: Pakistan needs foreign US aid16
Article # 02: Can Pakistan survive without US aid?18
Article # 03: US military aid: then and now20
Article # 04: How dependent is Pakistan on US aid?22
Governments Wise History of Pakistan Foreign Aid24
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