Financing Development Expenditures Through Development Aid and Its Impact on Economic Growth
26 Pages Posted: 3 Jul 2014
Date Written: July 2, 2014
The study investigates the financing development expenditures through development aid and its impact on economic growth in Pakistan using time series data for the time period 1980-2012. Ordinary least square (OLS) has been applied for the estimation of model and instrumental variables are introduced. The explanatory variables of the study are development indicators variables (life expectancy, GNI and Population Growth), Development Assistance, Gross Domestic Savings and service GDP, agriculture and GDP (per capita growth) is the dependent variable. The findings of the study suggested that Development Assistance and Development Expenditures do not have any link but individually GDP and Development Assistance seems to be having some link. So finally financing of development expenditures by development aid cannot do anything to improve growth of economy but if we consider these two variables individually.
Keywords: Key Words: Development Assistance, Development Expenditures, GDP growth, OLS
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