This paper examines fungibility as a possible explanation for the "missing link" between foreign aid and economic growth. The composition of aid plays a crucial role in determining the composition of government spending and, consequently, the magnitude of fungibility and its impact on growth....

The study investigates the financing development expenditures through development aid and its impact on economic growth in Pakistan using time series data for the time period 1980-2012. Ordinary least square (OLS) has been applied for the estimation of model and instrumental variables are...