Foreign-Aid is considered a key to economic growth in developing countries.
Governments of developing countries are not able to fulfil the requirements of
development. Official Development Assistant is used as supplements of domestic resources, and
it plays a vital role in the bridge the gap of the budget deficit. Health is the main contributor to
economic growth. Like other sectors, Pakistan relies on foreign aid to improve the health sector.
The main purpose of the paper to assess the impact of foreign aid on the health sector of Pakistan.
Time series data for the time period of 1984 to 2019 was used. Auto-Regressive-Distributed-lag
model had been used to find out short as well as long-run association among the variables. The
results of the study showed a positive and significant impact of foreign aid on the health sector
1-Aftab Anwar Assistant Professor, University of Education, Lahore, Punjab, Pakistan.2-Ghulam Yahya Khan Assistant Professor, Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Muzaffarabad, Kashmir, Pakistan.3-Muhammad Masood Anwar PhD Scholar, Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Muzaffarabad, Kashmir, Pakistan.
Foreign Aid, Health Sector, ARDL, Investment, Openness