Foreign Aid and Economic Growth

Farheen Fatima

School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.

DOI: 10.4236/oalib.1100632                

Abstract

This paper represents the study about the impact of foreign aid on the economic growth of Pakistan by taking into consideration previous studies done on the same topic for different developing countries. As results show that if aids are properly allocated in desired section which in real need development than it can prove fruitful but normally aid given to such countries always have some objective behind that with already defined section where that aid should be utilized, but if such countries are given free hand to use them they can use them in their desired section and can have more appropriate and better results in their development. Also in such countries there come the prospect of corruption if corruption is properly removed from the roots of that economy than it necessarily have better developmental result on its economy.

Keywords

Aid Effectiveness, Developing Countries, Economic Growth, Foreign Aid, Inflation Rate

Conflicts of Interest

The authors declare no conflicts of interest.

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