How Does Foreign Aid Affect Economic Growth

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. “The impact of foreign debt on the economic growth of Pakistan Research problem: The problem of this proposal is to distinguish between the negative and positive impacts of foreign aid. I highlighted the relationship between the two variables impact of foreign aid and economic growth. I want to analyze that whether is it positive or negative? I want to analyze that the increment in foreign aid affects our imports and exports gap and also the saving investment gap either negatively or positively. Introduction: “In a country well governed poverty is something To be ashamed of. In a country badly governed Wealth is something to be ashamed of” (Confucius, Chinese philosopher) Poverty is not only the cause also the result of mismanagement in resources of…show more content…
In Pakistan many economist tried to analyze the role of foreign aid on the economic growth and development. Many economist as, mehmood and shabir (1992), Raheem and Khan (1993) analyzed that aid enhanced the rate of growth. In case of Pakistan Due to mismanagement and miss utilization of foreign aid we can not avail the benefits of aid as well. So that some other economist also measure the negative effects of aid on economic growth such as Shabbir and mehmood also measure the negative effect of aid in (1992) at the same time of period. Mahmood in (1997) analyzed that due to miss management foreign aid can’t play significant role on our economic growth. Khan (1993) foreign aid played a significant role in economic growth of Pakistan. Especially (FCI) played very important role and investment and imports largely depend upon foreign aid. So that, this dependence makes the heavy burden on

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