This dissertation is compiled of three chapters in determining the effect of bilateral foreign assistance on the economy of Pakistan. The effect of foreign assistance will be measured in terms of public expenditure and revenue. The factors associated in the provision of aid commitments and disbursements, and the effect of bilateral assistance on the production efficiency of Pakistan. Chapter 1 uses an aid disaggregation approach to examine the impact of different types of bilateral donors on the fiscal sector of Pakistan, an important aid recipient in recent years. The purpose of this study is to determine the impact of bilateral aid on the economy of Pakistan, from the four largest donors, which include the USA, Japan, the United Kingdom, and Germany. Time series data for the period 1972-2010 were analyzed along with an estimation of a fiscal response model following Mavrotas (2005) that combines both aid disaggregation in terms of types of aid and the treatment of endogeneity. The empirical estimation of the structural equations and reduced form equations, using nonlinear three stage least squares estimation clearly suggests the importance of the above approach for delving deeper into aid effectiveness issues. Since different bilateral donors have different effects on key fiscal variables, an impact could not be revealed if a single figure for aid were employed. While aid from Japan increases public investment, aid from the USA, the UK, and Germany appears to cause a reduction in public investment. Similarly, aid from Japan reduces public consumption, but the aid from other donors causes an increase in public consumption. In regards to tax revenue, the aid flows from the USA, the UK and Germany leads to a reduction in tax revenue, but aid flow from Japan increases tax revenue. Chapter 2 investigates the relation between aid disbursements and aid commitments from the fourteen largest donors to Pakistan, and determine the factor that effects commitments and the disbursements. The time series data was employed for the period 1972-2010. The estimation of the model through fixed effect approach and two stage least squares approach showed that aid disbursements, aid commitment from donors to African countries, and Pakistan's membership at the United Nations Security Council effects aid commitments positively and significantly. But, the inverse relation existed between GDP per capita of Pakistan and aid commitments. Similarly, aid commitments relation with the aid disbursements was positive and significant. The war in Afghanistan during any time between1972-2010 increases the aid disbursement to Pakistan. It was also determined that if the level of primary education increases, the aid disbursement to Pakistan decreases. The results also showed that when Pakistan is ruled by the military government the aid disbursements to Pakistan reduces. Chapter 3 focus is to see the impact of different bilateral donors on the production inefficiency of the Pakistan. To empirically estimate the effect of bilateral aid heterogeneity on production inefficiency, we use the time series data for Pakistan for the period 1972-2010. The stochastic frontier analysis was conducted using maximum likelihood estimation. The results determined that the aid from the United Kingdom (UK) and Germany tends to increase production efficiency of Pakistan. However on the contrary aid from Japan tends to decrease production efficiency. It was also concluded from the results that foreign direct investment and public investment also increases production efficiency. But, the relation between human capital and production efficiency was negative. Also, the results indicated that when Pakistan is ruled by the military government the aid flows from the USA and UK reduces production efficiency.

Masteropgave. / Format: PDF. Bibl.

Masteropgave. / Format: PDF. Bibl.

Master's thesis. / Format: PDF. Bibl.

Master's thesis. / Format: PDF. Bibl.

Masteropgave. / Format: PDF. Bibl.

In Sub-Saharan Africa, one of the world’s poorest regions, governments heavily rely upon donor Aid in order to sustain their national budgets and address the exacerbation of poverty. Malawi, one of the poorest countries in the region is no exception and part of the cause of the poverty is donor aid suspension. The United Nation’s World Food Programme (WFP) in Malawi introduced the School Feeding programme in 1999. The intention was to reduce dropout rates, promote regular attendance, increase enrolment, and improve children’s ability to concentrate and learn, and improve government capacity to implement a school meals programme. During the period between 2007 and 2011, the WFP announced the temporary suspension of the programme for half a million children in 10 of the 13 Malawian Districts of which the Chirazdulu district was one. Since the suspension of the programme, no proper study has been conducted to indicate the bearing of the suspension. The purpose of the study was to explore in which ways suspension of Aid provision by the WFP from 2007 to 2011 affected the school meals programme and the socio-economic status of the beneficiaries of the programme in the Chiradzulu district in Malawi. Participants in the study were three teachers at two schools where the programme is offered and four parents from the two schools who were involved in the administration of the programme. A qualitative research approached was used and a case study design was applied at two schools in the Chiradzulu district where the WFP’s school meals programme was implemented. Semi-structure interview schedules that were pre-tested were used during the individual interviews conducted with parents and teachers. The school meals programme is still implemented at the two schools today. The main findings revealed that donor aid suspension affected the continued implementation of the school meals programme and the socio-economic wellbeing of the programme’s beneficiaries. There was a reduction in school attendance by learners, increased absenteeism, evidence of malnourishment amongst learners and increasing pressure on parents to provide breakfast for the learners before they went to school. For the programme to have a sustainable impact it is recommended that its implementation must not be interrupted by aid suspension, the programme must be expanded but remain targeted and not become universal and the Malawi government assume full responsibility of the programme and stop reliance on foreign funding.

Master's thesis. / Format: PDF. Bibl.

Foreign aid is publicly motivated by a moral obligation to help the poor and develop underdeveloped countries. Donors have invested more than US$2.3 trillion in foreign aid, but despite this significant investment, 3 billion people are still living on less than $2 a day, 840 million are hungry, 10 million children die from preventable disease, and 1 billion adults are illiterate. This study focuses on the impact of foreign aid on economic growth and development of underdeveloped countries. It was found that many variables influence growth and development and that cross-country regression analysis is an inappropriate method to measure the effectiveness of aid. The methodology is too generalist, and treats foreign aid as a homogenous entity that works equally in all countries in all types of environment and across all times. There is an urgent need to develop a new methodology for measuring the effectiveness of foreign aid. / Development Studies / M. A. (Development Studies)

Foreign aid is publicly motivated by a moral obligation to help the poor and develop underdeveloped countries. Donors have invested more than US$2.3 trillion in foreign aid, but despite this significant investment, 3 billion people are still living on less than $2 a day, 840 million are hungry, 10 million children die from preventable disease, and 1 billion adults are illiterate. This study focuses on the impact of foreign aid on economic growth and development of underdeveloped countries. It was found that many variables influence growth and development and that cross-country regression analysis is an inappropriate method to measure the effectiveness of aid. The methodology is too generalist, and treats foreign aid as a homogenous entity that works equally in all countries in all types of environment and across all times. There is an urgent need to develop a new methodology for measuring the effectiveness of foreign aid. / Development Studies / M. A. (Development Studies)