Role of Foreign Aid in Employment Generation; A Case Study of Pakistan

Anam Tanveer · Muhammad Mehran Latif · Maryum Ziafat

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International Development and Aid Economic Growth and Productivity Economic Growth and Development

Abstract

Foreign aid is very important for the development process of a country. The main aim objective of this study was to empirically investigate the relationship between foreign aid and employment generation in Pakistan. Secondary data was collected from 1980-2015 for time series data analysis. World Development Indicators and the Pakistan Economic Survey were the main sources of data (World Bank, 2020). ARDL model used for the data analysis. Employment level was used as a dependent variable, and foreign aid, Economic Growth (GDP), Gross Fix Capital Formation (GFCF), government expenditure, participation rate, and exports were used as independent variables. Form the results of the study, and it was clear that foreign aid and employment level have a positive and significant association in Pakistan. The study concludes that foreign aid has positively contributed to employment generation.

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References

2001Bounds testing approaches to the analysis of level relationships 1995Estimating long-run relationships from dynamic heterogeneous panels 2008Foreign Aid and Economic Growth: A Cointegration Analysis of the Six Poorest African Countries 1966Optimal Patterns of Growth and Aid The Case of Pakistan 2013Does foreign aid promote recipient exports to donor countries?2007Foreign Aid—Blessing or Curse: Evidence from Pakistan 2008Foreign Aid—Blessing or Curse: Evidence from Pakistan 2011Foreign Aid and Growth Nexus in Pakistan: The Role of Macroeconomic Policies

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