foreign aid

Topics: Development aid, Aid, Development Assistance Committee Pages: 31 (7224 words) Published: October 10, 2014

Impact of Foreign aid on economic Development of Pakistan

Submited to: Ms. Samreen Manawar
Submitted by: Bushra Mahmood
Class: BS (Hons)
Roll No: 1891

“Department of Economics”
Lahore College for Women University, Lahore.

Table of Contents

Ch # 1 1.1 Introduction
1.2 Problem Statement
1.3 Significant of the study 1.4 Objective of Study
1.5 Researchs Question
1.6 Hypothesis
Ch # 2 Literature Review
Ch # 3 Data and Methodology
3.1 Data
3.2 Variable Specification 3.3 Model Specification Ch # 4 4.1 Recomondation
4.2 Conclusion

Impact of Foreign aid on Economic Development of Pakistan
This research paper attempted to analyze the factors that determine the impact of foreign aid on economic development of Pakistan. It further explained foreign aid’s meaning, history as well as positive and negative impacts of foreign aid on economic development of Pakistan. The Simple and multiple regression line used to determine the effect of aid on development of Pakistan. Bases on review the result shows that foreign aid has positive as well as negative impact on economic development of Pakistan. The result indicate that foreign aid donation do have a positive impact on economic growth of the recipient.

Chapter No: 1
1.1 Introduction
The term foreign aid means in flow of cash, goods and services from rich country to poor countries.  Those who give aid are called donors and the recipients thereof are called Donee (Arne Bigsten, 2006). The foreign aid has played a vital role in third world countries. Foreign aid improves infrastructure, poverty alleviation and fill the budgetary gap and bring rapid development in some countries. Foreign economic aid is a provision of financial and physical forms of assistance to the developing countries for strengthening their economies. Foreign aid is granted by governments, individual and private organizations. The main role of foreign aid in stimulating economic growth is to supplement domestic sources of finance such as savings, thus increasing the amount of investment and capital stock. Foreign Aid used to fill the budgetary gap, trade promotion and strategic considerations. Foreign aid is an important topic given its implications for poverty reduction in developing countries. Foreign aid has many types like Humanitarian aid is generated to fight natural disasters and damages cause by wars. Development aid is facilitated by developed countries to underdeveloped as well as developing countries to support in economics or social development. Foreign aid can be Tied or untied (Josepa Miquel-Florensa, 2009). Tied aid is the practice of requiring the recipient to spend a proportion of the aid given on goods and services produced by the donor country. Whereas in untied aid there is no such requirement. A total of 30% of foreign aid is tied. Food aid is provided in terms of wheat; rice etc to overcome food shortage. The recent development has further extended the scope of foreign aid, now, it is also granted to support the political set up in recipient countries. Foreign aid may be transfer from government to government or from donors to donee, therefore, foreign aid may be bilateral to multilateral.(Declan, 2008)Bilateral means government to government transfer and multilateral refer to such as the World Bank or IMF, pool aid from one or more sources and disperse it among many...
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