Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]

The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. But UDC’s (including Pakistan) don’t have the investment friendly policies. So, they have to rely on the Foreign aid and Debt rather than FDI and portfolio investments. The role of these external resources always remains questionable. This paper analyzes the trends and structure of the foreign aid in Pakistan during 1960-2002 and its role and effectiveness in the economic development in Pakistan.Foreign capital inflows (FCI); Foreign Aid; Economic Development; Foreign Economic Assistance; Official Development Assistance (ODA); Foreign Debt Burden; Aid and Growth; Trends and Structure of Aid; Aid Effectiveness

Impact of Foreign Capital Inflows (FCI) on Economic Growth in Pakistan [1975-2004]

The Two-Gap Model suggests that the Poor countries have to rely on the foreign capital inflows (FCI) to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign capital inflows like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. So, UDC’s (including Pakistan) have to rely on the Foreign aid, Debt FDI and portfolio investments. The role of these external resources (FCI) always remains questionable. This paper analyzes the impact of the foreign capital inflow on GDP Growth in Pakistan during 1975-2004.Foreign capital inflows (FCI); Foreign Investment; Economic Growth; Foreign Economic Assistance; Official Development Assistance (ODA); Foreign Direct Investment (FDI). Foreign Debt Burden; Aid and Growth; FCI Effectiveness

Exploring Spatial Trends in Wealth Inequalities in Punjab, Pakistan

This study examines the disparities in wealth inequality across districts in Punjab, Pakistan. The paper documents Gini coefficients of wealth inequality using disaggregate household data to assess disparities at the district level as well as disaggregated by urban and rural areas for each district. Furthermore, the paper deploys spatial statistical tools to explore the spatial disparities in wealth inequality in Punjab. This study finds the existence of spatial clustering in wealth inequality in districts at aggregate, urban, and rural area levels. The study emphasizes the need to allocate resources for eradication of disparities among regions and districts. Furthermore, policies and decision-making aimed at reducing regional disparities and in enhancing equity are needed. Given the spatial clustering in economic depravity, the remedial policies must be spatially aware and sensitive to spatial interdependencies discovered in this pape

Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]

The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. But UDC’s (including Pakistan) don’t have the investment friendly policies. So, they have to rely on the Foreign aid and Debt rather than FDI and portfolio investments. The role of these external resources always remains questionable. This paper analyzes the trends and structure of the foreign aid in Pakistan during 1960-2002 and its role and effectiveness in the economic development in Pakistan

Impact of Foreign Capital Inflows (FCI) on Economic Growth in Pakistan [1975-2004]

The Two-Gap Model suggests that the Poor countries have to rely on the foreign capital inflows (FCI) to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign capital inflows like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. So, UDC’s (including Pakistan) have to rely on the Foreign aid, Debt FDI and portfolio investments. The role of these external resources (FCI) always remains questionable. This paper analyzes the impact of the foreign capital inflow on GDP Growth in Pakistan during 1975-2004

Impact of Foreign Aid on Economic Development in Pakistan [1960-2002]

The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance, Project & non-project aid etc. But UDC’s (including Pakistan) don’t have the investment friendly policies. So, they have to rely on the Foreign aid and Debt rather than FDI and portfolio investments. The role of these external resources always remains questionable. This paper analyzes the trends and structure of the foreign aid in Pakistan during 1960-2002 and its role and effectiveness in the economic development in Pakistan

Determinants of GDP Fluctuations in Selected South Asian Countries: A Macro-Panel Study

Now a days, the issue of volatility in GDP is becoming a fundamental development concern due to the undeniable connections between volatility and lack of development. In addition, the recognition of the negative link between short-term fluctuations and long-term growth not only signifies the importance of exploring this link but also stresses the importance of studying the determinants of the GDP fluctuations so that the efforts to manage these fluctuations can be made. Therefore, keeping in view, the importance of studying the factor causing fluctuations in GDP, the present study aims at exploring the determinants of GDP fluctuations using macro panel approach in a panel of five selected South Asian countries (SSAC) including Bangladesh, India, Nepal, Pakistan and Sri Lanka over the period of 1980- 2010. For this purpose, modern non-stationary panel techniques such as cross section dependence test, second generation unit root test under cross sectional dependence, panel cointegration and Group Mean Fully Modified OLS (GM-FMOLS) estimation are applied. The results of the group mean FMOLS estimates show that aid dependence (AIDGDP), trade openness (OPEN), volatility in the price level (PRIVOL), reliance on agriculture (AGRGDP) and political stability (POLSTB) are the significant determinants of the GDP fluctuations. Thus, it is suggested that these determinants may be managed to reduce the volatility in GDP growth rate. JEL Classification: E32, F44, N15 Keywords: Determinants of GDP Fluctuations, Determinants of GDP Volatility, South Asia, Group Mean FMOLS, Panel Cointegration, Macro Panel, Business Cycle Fluctuation

GDP Fluctuations and Private Investment: A Macro Panel Analysis of Selected South Asian Countries

The current study examines the relationship between GDP fluctuations and private investment by using macro panel approach in a panel of five selected South Asian countries (SSAC) including Bangladesh, India, Nepal, Pakistan and Sri Lanka for the period of 1980-2010. The study applies modern non-stationary panel techniques such as cross section dependence test, unit root test under cross sectional dependence, panel cointegration and Group Mean Fully Modified OLS (GM-FMOLS) estimation. The study finds a long-run co-integrating relationship between GDP fluctuations and private investment in the SSAC. GM-FMOLS estimates show that this link is negative. Thus, the results indicate that GDP fluctuations have a significant negative impact on private investment in SSAC as GDP volatility gives a negative signal to private investors. The study also suggests that GDP volatility may be harmful for private investment in developing countries and negative effect on private investment will also be transferred to growth as the investment is a key determinant of growth. So, the governments of developing countries should equally focus on managing the volatility of GDP to increase private investment along with other measures for creating an investment-friendly environment. Additionally, an increase in private investment will further help in maintenance of stability

GDP Fluctuations and Private Investment: A Macro Panel Analysis of Selected South Asian Countries

The current study examines the relationship between GDP fluctuations and private investment by using macro panel approach in a panel of five selected South Asian countries (SSAC) including Bangladesh, India, Nepal, Pakistan and Sri Lanka for the period of 1980-2010. The study applies modern non-stationary panel techniques such as cross section dependence test, unit root test under cross sectional dependence, panel cointegration and Group Mean Fully Modified OLS (GM-FMOLS) estimation. The study finds a long-run co-integrating relationship between GDP fluctuations and private investment in the SSAC. GM-FMOLS estimates show that this link is negative. Thus, the results indicate that GDP fluctuations have a significant negative impact on private investment in SSAC as GDP volatility gives a negative signal to private investors. The study also suggests that GDP volatility may be harmful for private investment in developing countries and negative effect on private investment will also be transferred to growth as the investment is a key determinant of growth. So, the governments of developing countries should equally focus on managing the volatility of GDP to increase private investment along with other measures for creating an investment-friendly environment. Additionally, an increase in private investment will further help in maintenance of stability

Infrastructure Development in Punjab, Pakistan:From Assessment to Spatiotemporal Analysis at District Level

Access to inclusive and sustainable infrastructure to the masses of each spatial unit of any country and region is of the paramount importance. This paper aims at examining the level of infrastructure development, analysis of spatial disparities in infrastructure and temporal comparison of infrastructure development across the districts in Punjab, Pakistan. For this purpose, the current study uses a wide range of indicators to depict the real picture of infrastructure development in Punjab and to analyze the spatiotemporal dynamics. The overall infrastructure development has been divided into three sub-dimensions; public-utilities infrastructure, communication infrastructure and social infrastructure. All the data has been taken from Multiple Indicators Cluster Survey (MICS) Punjab, Census of Healthcare Establishments in Punjab, and Punjab Development Statistics (PDS). For the temporal assessment, the two different time periods of 2011 and 2014 have also been compared. The Analytical Hierarchical Process (AHP) technique has been used to assign the weights to indicators in sub-dimensions and to each sub-dimension in composite index. Geographic Information System (GIS) tools have also been applied for spatial mapping and representation of analysis results. The study finds that the Southern and South-Western districts of Punjab are the most deprived districts in all dimensions of infrastructure studied in this study. Whereas, the districts of North and North-Eastern Punjab are the best districts in almost all dimensions of infrastructure development. The temporal analysis reveals that the level of infrastructure development depreciated in most of the districts as it could not be developed as per the increase in population. These findings emphasize the need for prioritizing the public investment on infrastructure in the deprived districts on Southern and South-Western border of Punjab to remove the disparities