EFFECT OF REMITTANCE AND OFFICIAL DEVELOPMENT AID ON THE ECONOMIC GROWTH OF PAKISTAN
- 주제(키워드) Economic Growth , Remittance , Foreign Aid
- 발행기관 아주대학교
- 지도교수 Kyung Ho Lee
- 발행년도 2018
- 학위수여년월 2018. 2
- 학위명 석사
- 학과 국제대학원 국제통상학과
- 실제URI http://www.dcollection.net/handler/ajou/000000026112
- 본문언어 영어
- 저작권 아주대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
As Pakistan is receiving a large amount of remittance and official development assistance (ODA)/foreign aid, it is very applicable to examine the impact of these factors on the economic growth of Pakistan. It’s been seventy years since Pakistan became independent and is still struggling for sustainable economic development in spite of receiving huge flows of foreign aid and remittances. During last several decades, there has been a considerable debate among scholars and economists regarding the role of remittance and foreign aid on the economic growth in the perspective of developing countries. Pro-aid and pro remittance school of thought or classical school argue that these factors have helped in developing the economy while neoclassical growth framework suggests that remittance and foreign aid have no effect on the economic growth. The results of this study show a positive and significant relationship between economic growth and, remittance both in long term and short term. The second significant finding of the study reveals that foreign aid has a long-term positive impact on GDP growth of Pakistan but has insignificantly affected the GDP growth in short term. The results reveal a strong support for the pro-remittance and pro-aid school of thought, which believes that these capital inflows help in economic development. The two variables have a robust link and have shown a positive impact on the GDP growth of Pakistan. This study investigated the relationship between GDP, remittance, and foreign aid using Augmented Dickey-Fuller Test using unit root to check the stationarity/non-stationarity of the data, Johansen Cointegration test, Vector Error Correction Model (VCEM) by means of time series data from 1976 to 2015.
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CHAPTER I 1
INTRODUCTION 1
1.1 General Background 1
1.2 Statement of the Problem 3
1.3 Objective of the Study 4
1.4 Limitation of the Study 4
1.5 Significance of the Study 5
Chapter II 6
AN OVERVIEW OF PAKISTAN’S ECONOMY, REMMITTNCE, AND FOREIGN AID 6
2.1 Composition and Description of Pakistan’s Economy 6
2.2 Remittances and Economy of Pakistan 8
2.3 Remittance and its Trends 11
2.4 Remittance and Its Benefits to the Economy of Pakistan 14
2.5 Foreign Aid and Economy of Pakistan 15
2.5 Foreign Aid Trends in Pakistan 18
2.6 Benefits of Foreign Aid to Economy of Pakistan 19
CHAPTER III 22
LITERATURE REVIEW, HYPOTHESIS AND RESEARCH METHODOLOGY 22
3.1 Literature Review 22
3.2 Hypothesis 24
3.3 Research Methodology 24
CHAPTER IV 25
EMPIRICAL ANALYSIS AND INTERPRETATIONS 25
4.1 Empirical Analysis 25
4.2 Variables Description 25
4.2.1 GDP (Gross Domestic Product): 25
4.2.2 Official Development Aid (ODA): 25
4.2.3 Remittance 26
4.3 Model Specification 26
4.3.1 Johansen Cointegration Test 27
4.3.2 Vector Error Correction Model (VECM) 28
4.4 Estimation and Interpretation 28
4.4.1 Unit Root Test 28
4.4.2 Johansen Cointegration Test 29
4.4.3 Vector Error Correction Model (VECM) 31
4.4.4 Residual Diagnostic Tests 33
4.5 Discussion 33
CHAPTER V 35
CONCLUSION AND RECOMMENDATIONS 35
REFERENCES 38
WEBSITES 41
APPENDIX 42
