scholarly journals Impact of Foreign Aid on Fiscal Behaviour: A Case Study of Pakistan (1980-2000)

2002 ◽  
Vol 7 (1) ◽  
pp. 117-124
Author(s):  
Salman Ahmad
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Foreign Exchange ◽  
Public Investment ◽  
Fiscal Constraint ◽  
Gap Models

Economists have been trying to study the linkages between aid inflow and government activities in developing countries. With the passage of time, the analysis has become more sophisticated. The development of two-gap models [for example, Chenery and Bruno(1962); and Chenery and Adelman(1966), among others] was an important contribution to the literature. More recently, two-gap models have been extended into threegap models. Iqbal (1995) added a fiscal constraint to the traditional saving and foreign exchange gap. In such cases, the fiscal constraint is intended to reflect potential limitations to finance public investment that may be required to support a given level of output.

Foreign Aid and Family at Risk

2015 ◽  
pp. 425-439
Author(s):  
Kana Takamatsu
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Developing Countries ◽  
Foreign Aid ◽  
Migrant Workers ◽  
Management Tool ◽  
And Migration ◽  
Aid Policy ◽  
Policy Discussion

This chapter examines how the foreign aid policy should and should have supported families facing risks by using the case study of Myanmar. The chapter starts by addressing the issue of poverty, which continues to be the gravest risk in the developing countries, and how family could be the cause of poverty as well as the solution of poverty in foreign aid policy discussion. The situation of poverty and migration as a risk management tool are then examined in the second section of the chapter. Interviews with migrant workers in Thailand and Japan were conducted. Finally, there is a discussion about the developments of Myanmar and how the foreign aid and international community has inadequately responded to the democratization of Myanmar and to the needs of its people.

Foreign Aid and Family at Risk

2020 ◽  
pp. 154-168
Author(s):  
Kana Takamatsu
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Developing Countries ◽  
Foreign Aid ◽  
Migrant Workers ◽  
Management Tools ◽  
And Migration ◽  
Aid Policy ◽  
Policy Discussion

This chapter uses the case study of Myanmar to examine how the foreign aid policy should have supported families facing risks. The chapter addresses the issue of poverty, which continues to be the gravest risk in the developing countries. Family could be the cause of poverty as well as the solution of poverty in foreign aid policy discussion. The situation of poverty and migration as risk management tools is examined. Interviews of migrant workers in Thailand and Japan were conducted. There is also a discussion about the developments of Myanmar and foreign aid and how the international community has inadequately responded to the democratization of Myanmar and to the needs of its people.

External Financing, Gap Models of Growth, and the Macroeconomics of Relying on Foreign Resources

2020 ◽  
pp. 198-219
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Debt Crisis ◽  
Strong Dependence ◽  
Capital Inflows ◽  
External Financing ◽  
Foreign Loans ◽  
Financing Gap ◽  
Gap Models

Chapter 10 reviews the factors responsible for the strong dependence of developing countries on foreign capital and foreign aid, as well as the cyclical capital inflows and long-term development problems entailed by such a situation. It then discusses a family of models, some of which were developed after the debt crisis and recession of the 1980s and 1990s. These models aim to determine the amount of foreign loans and grants required to reach a preset rate of growth of GDP. It finally assesses the macroeconomic and growth impact of high dependence on foreign finance and foreign aid.

scholarly journals Under-invoicing of Imports: A Case Study of Pakistan

1993 ◽  
Vol 32 (4II) ◽  
pp. 1141-1155
Author(s):  
Zafar Mahmood ◽  
Riaz Mahmood
Keyword(s):  
Developing Countries ◽  
Foreign Exchange ◽  
The Other ◽  
Capital Flight ◽  
Foreign Competition ◽  
Black Markets ◽  
Tax Revenues ◽  
Exchange Markets ◽  
Travel Abroad

Most of the developing countries, including Pakistan, set high tariffs and stringent quantitative restrictions (QRs) to protect their domestic industries from foreign competition and to raise tax revenues. Both tariffs and QRs, due to the weak enforcement of controls, provide incentives to smuggle goods through illegal channels and to under-invoice imports through legal channels of trade to evade import taxes. In particular, under-invoicing of imports challenge both the abovementioned obj~ctives; that is. the under-invoicing of imports confers much lower protection to domestic industries than that accorded by statutory rates of import duties, while the tax revenues are lost as import taxes are evaded. Tariff barriers, QRs, and foreign exchange rationing give rise to black foreign exchange markets. Foreign remittances and under-invoicing of exports are the major supply sources of foreign exchange in black markets. On the other hand, the demand for illegal foreign exchange comes largely from the nationals who want to travel abroad, capital flight abroad, and the under-invoicing of imports which requires the purchases of black market foreign exchange to make full payment to the foreign exporter.

Foreign Aid and Family at Risk

2014 ◽  
pp. 106-121
Author(s):  
Kana Takamatsu
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Developing Countries ◽  
Foreign Aid ◽  
Migrant Workers ◽  
Management Tool ◽  
And Migration ◽  
Aid Policy ◽  
Policy Discussion

This chapter examines how the foreign aid policy should and should have supported families facing risks by using the case study of Myanmar. The chapter starts by addressing the issue of poverty, which continues to be the gravest risk in the developing countries, and how family could be the cause of poverty as well as the solution of poverty in foreign aid policy discussion. The situation of poverty and migration as a risk management tool are then examined in the second section of the chapter. Interviews with migrant workers in Thailand and Japan were conducted. Finally, there is a discussion about the developments of Myanmar and how the foreign aid and international community has inadequately responded to the democratization of Myanmar and to the needs of its people.

scholarly journals Constraints to the Economic Growth of Pakistan: A Three-gap Approach

1995 ◽  
Vol 34 (4III) ◽  
pp. 1119-1133 ◽  
Author(s):  
Zafar Iqbal
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Developing Economies ◽  
Public Investment ◽  
Gap Model ◽  
Potential Output ◽  
Fiscal Constraint ◽  
Domestic Savings ◽  
Growth Prospects ◽  
The Impact

The development of the two-gap model [Chenery and Bruno (1962); Chenery and Strout (1966); Mckinnon (1964); and Weisskopf (1972)] was an important contribution to the literature of economic development. The two-gap model deals with the interactions between the savings constraint and the foreign exchange constraint in the determination of economic growth in an economy. The savings constraint refers to the situation when the growth of an economy is limited by the availability of domestic savings for investment, and the foreign exchange constraint refers to the growth of an economy being limited by the availability of foreign exchange for importing capital goods. Mbre recently, there has been increasing interest in the three-gap model, introducing fiscal constraint as a third gap limiting the growth prospects of highly indebted developing economies [Bacha (1990); Solimano (1990) and Taylor (1993, 1994)]. The fiscal constraint is intended to reflect the impact of the availability of resources to finance the public investment required to support a given level of potential output. These constraints are selected for analysis because of their direct impact on economic growth of Pakistan. The paper is structured as follows: Section 2 presents the three-gap model; in Section 3, the economy-wide potential output and capacity utilisation of Pakistan are estimated; in Section 4, the empirical results are discussed; the conclusions are summarised in Section 5.

Peter J. Montiel, Pierre-Richer Agenor, and Nadeem ul Haque. Informal Financial Markets in Developing Countries: A Macroeconomic Analysis. Published in the "Advances in Theoretical and Applied Economics" series edited by Homa Motamen-Scobie. Oxford: Blackwell. 1992. i-xi + 212 pp., including appendices. Hardbound. £40.00.

1993 ◽  
Vol 32 (3) ◽  
pp. 332-335
Author(s):  
Willem Van der Geest
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Capital Mobility ◽  
Banking System ◽  
Exchange Rate Policy ◽  
Informal Markets ◽  
Financial Repression ◽  
Macroeconomic Analysis ◽  
Econometric Analyses

This volume reviews the nature and scope of informal financial markets in developing countries and elaborates on the theoretical and conceptual models which analyse 'financial repression' and other aspects of government intervention in financial markets. It also focuses on the consequences which the prevalence of informal financial markets in developing countries may have for monetary and exchange rate policy. In particular, it attempts to capture the functioning of informal, unregulated markets into macroeconomic models, working towards a general eqUilibrium model with informal financial markets. Two types of informal markets are analysed. The first are for informal lending at terms and conditions which differ greatly from those prevailing in the official banking system. The second are the 'parallel' markets for foreign exchange which tend to emerge in response to quantity restrictions on trade and administered allocation of foreign exchange to certain users at official rates, which are well below those on the parellel markets. The key question is whether these informal markets change the efficacy of monetary and credit policy-and, if they do, to what extent and in what direction? Two supporting appendices present econometric analyses of the efficiency of parallel currency markets and the degree of capital mobility in developing countries.

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