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Items tagged with: foreignaid
Tag was last used: Mar 30, 2011
 
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Posted By:  moheyuddin
Posted On:  Mar 30, 2011

  The Macroeconomic Analysis of Foreign Capital Inflows in Pakistan
Title:  The Macroeconomic Analysis of Foreign Capital Inflows in Pakistan Subtitle:   A Re-Examination Using Vector Error Correction Approach Abstract: The topic of Foreign Capital Inflows (FCI) to Pakistan got much attention in empirical...... [view]
Posted By:  vickinikolaidis
Posted On:  Sep 29, 2010

  United Nations' Millennium Development Goals
100 percent Agreement in the United Nations: Less Talk, More Action. Although Right to Left on Political Spectrum, All Have an Opinion on the UN's 2015 Millennium Development Goals. Each leader of the 140 countries in attendance has stated the progress and problems in their country, as well...... [view]
Posted By:  Valie2881
Posted On:  Sep 18, 2008

  Foreign aid to Africa I- The Pitfalls
The western world has been known for its generosity to the third world countries especially Africa. But their grants never get to those who need it. Now i proffer a solution to anyone who is willing to send grants to Africa, so that the grant will benefit those who actually need it, not to...... [view]
Posted By:  scoutbanana
Posted On:  Apr 4, 2007

  no more foreign aid institutions. . . it's china
Foreign aid; development assistance; foreign investment; these terms are now gaining another synonym: rogue aid. In an excerpt from the Foreign Policy Blog , rouge aiders are defined as such, "Because their goal is not to help other countries develop. Rather, they are motivated by a desire to...... [view]
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   Browse the ebook The Macroeconomic Analysis of Foreign Capital Inflows in Pakistan

Submitted By:   moheyuddin
Author Name:  Ghulam Mohey-ud-din
Published:  0000-00-00
Website:  http://www.grin.com/e-book/169492/?partner_id=722732
  Description:   The topic of Foreign Capital Inflows (FCI) to Pakistan got much attention in empirical literature, but the existing literature on FCI about Pakistan mostly used the customary econometric tools like OLS, 2SLS, FIML and 3SLS for analysis. However, we know that most of the macroeconomic variables are non-stationary, which mandates the re-examination of the past studies using new time-series tools like cointegartion and ECM. Thus, the present book re-examines the macroeconomic role of Foreign Capital Inflows (FCI) in Pakistan through applying vector error correction model (VECM) on annual time-series data for the period of 1972-2006. The present study does not find any evidence for direct positive impact of aggregate FCI on GDP growth and Investment (capital formation). However, the study finds the positive (complementary) relationship between FCI and domestic saving, thus suggesting an indirect positive impact of FCI on GDP through supplementing domestic resources. These results seem contradicting i.e. positive relation with domestic savings but negative linkages with investment and growth. However, we can interpret it as that FCI is supplementing the domestic resources and there is a need and justification for FCI in Pakistan due the shortage of domestic savings. But, these inflows of foreign capital are not transforming in the productive investment and thus not boosting economic growth. As this study shows that most of FCI are of non-investment (non FDI) type and are concentrated in the selected non-export-oriented and less-employment-generating sectors. In addition, the present study finds that exchange rate depreciation and current account deficit causes more inflows of foreign capital in Pakistan. While FCI also results in increasing the import of goods and services in Pakistan. Subsequently, the present study suggests some policy recommendations like: (i) to target and identify the potential sectors for inviting the inflows of foreign capital, (ii) to change in composition of existing FCI, from non-FDI to FDI (investment) forms of FCI, (iii) to diversify the existing FCI from non-tradable and less job-oriented sectors to the tradable (export-oriented) and specially in agricultural-related manufacturing sectors, (iv) to mobilize the domestic resources, that will reduce the reliance on foreign assistance, and (v) to control the current account deficit and to stabilize the exchange rate, which will be helpful in reducing the reliance on foreign capital.
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