This paper provides new empirical findings on the aid-growth relation. We find evidence for considerable asymmetry in the aid-growth relation; i.e., aid cuts have a large negative impact on economic activity, while increasing aid may be ineffective in promoting growth. Development aid thus...

This paper represents the study about the impact of foreign aid on the economic growth of Pakistan. It takes into consideration previous studies done on the same topic for different developing countries. Results show that if aids are properly allocated in desired section which really need...

Past research on aid and growth is flawed because it typically examines the impact of aggregate aid on growth over a short period, usually four years, while significant portions of aid are unlikely to affect growth in such a brief time. We divide aid into three categories: (1) emergency and...