This study explores the linkage among aid volatility, macroeconomic policies, and economic growth of Pakistan (1972-2015). We have empirically analyzed the impact of foreign aid volatility on economic growth conditional to the macroeconomic policy environment. For this purpose, we have...

This paper investigates the macroeconomic challenges created by a surge in aid inflows. It develops an analytical framework for examining possible policy responses to increased aid, in terms of absorption and spending of aid - where the central bank controls absorption through monetary policy...