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.

The purpose of this research is to generate an insightful study of the effectiveness of U.S. aid on Mozambique's developing economy. Over the past 30 years, the U.S. , along with numerous other multilateral and bilateral organizations, has given large amounts of development assistance to Mozambique and, in the same duration, the country has seen tremendous economic improvement. Thus, this study aims to detennine the exact nature of the relationship between U.S. aid and per capita GDP from 1981-2007 for both Mozambique and a panel of African countries. According to prior studies, aggregate development assistance has greatly benefited Mozambique's economy and is a proven factor of economic growth for developing countries. This research, while showing a positive correlation between total official development assistance and growth, proves the effect of U.S. aid contributions to be insignificant.

Ninety percent of Canadian food aid donations were tied to domestic procurement sources until 2005. Procurement restrictions were reduced to 50% in 2005 and were eliminated in 2008. Implementing agencies are now free to procure commodities of their choice in locations of their choice. This study investigates whether the untying of Canadian food aid procurement in 2008 has made procurement decisions more responsive to changes in the relative prices of wheat, maize, and rice in Canadian cereal food aid baskets. It applies a pooled empirical model with regional fixed effects to regional price data and data on Canadian government-funded food aid shipments to five recipient regions. The results are mainly counterintuitive, which is partly attributable to a number of data and model limitations. Consequently, this study does not provide empirical evidence of cereal commodity substitution after the untying of Canadian food aid in 2008. However, there is still reason to believe that donor agencies substitute between cereal food aid commodities, especially after the elimination formal procurement restrictions. Further research is however needed to generate empirical evidence for this. / May 2017

In light of reports of protests and riots in response to rising food prices and food insecurity, this study asks whether the provision of food aid has an effect on the incidence of political unrest in recipient countries. It uses annual data on the quantities of American wheat aid delivered to 143 countries between 1972 and 2006. To overcome the potential for bias due to endogeneity, variations in U.S. agricultural production and recipient countries’ probability of receiving aid are used to predict the annual quantity of food aid provided to each country. Results from the instrumented regressions suggest that the provision of food aid does not have any impact on the incidence of political unrest.

This thesis provides an empirical indication of how the objectives of official development assistance (ODA), granted by the top five donors, affects the aid policy in the MENA region during the period 1990-2012, and how these objectives have changed during the period 2005-2012. As a first result, alleviation of poverty, commercial interests and the democratic status of the recipient altogether influence aid policy in the region. Recipients’ need and commercial interest are both important objectives for the donors but they have both lost some of its impact in recent times. Historical ties with France affect the aid policy in the region and strategic interests of the donors appear to have an unexpected effect on aid allocation behavior e.g. oil rich countries receive less aid, ceteris paribus. The democratic status of the recipient has a positive significant effect on received aid for the average recipient and the impact has increased with time in the MENA region. Moreover, donors react differently to recipients’ needs, commercial interest and democracy and there are also several differences among recipients with abundant oil resources and those with insignificant oil resources.

Thesis (Ed. D.)--Illinois State University, 1985. / Title from title page screen, viewed July 1, 2005. Dissertation Committee: Edward R. Hines (chair), Kenneth Strand, Mary Ann Lynn, Neal Gamsky, Vernon Pohlmann. Includes bibliographical references (leaves 110-116) and abstract. Also available in print.

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