Financing Development Expenditures Through Development Aid and Its Impact on Economic Growth

26 Pages Posted: 3 Jul 2014

See all articles by Farheen Fatima

Farheen Fatima

Quaid I Azam University Islamabad

Date Written: July 2, 2014

Abstract

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

Suggested Citation

Fatima, Farheen, Financing Development Expenditures Through Development Aid and Its Impact on Economic Growth (July 2, 2014). Available at SSRN: https://ssrn.com/abstract=2461559 or http://dx.doi.org/10.2139/ssrn.2461559

Farheen Fatima (Contact Author)

Quaid I Azam University Islamabad ( email )

Islamabad, Fedral
Pakistan

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