IMPACT OF FOREIGN AID ON PUBLIC EXPENDITURE IN PAKISTAN
Keywords:
Foreign Aid, Public Expenditure, Development, PakistanAbstract
Foreign aid represents an important source of finance in most developing countries, where it increase govt expenditure, and supplements low saving, narrow export earnings and thin tax bases. This study explores the relationship between govt expenditure and foreign aid in Pakistan. Data was collected from economic survey of Pakistan, other official publication and World Bank reports for 18 years from 1990 to 2008. Simple regression is used to analysis the data. The result reveals that there is positive relation ship between both program & project aid and govt expenditure.
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