Impact of Foreign Aid and Development Assistance on Gender Inequality in Pakistan: An ARDL to Co-integration Approach

Abstract

The study examines the impact of foreign development assistance and foreign aid on gender equality in Pakistan. Despite the rising body of research on assistance and human development, there is a notable absence of studies examining the link between foreign aid and gender equality, particularly in Pakistan. The research problem addressed in this study is the lack of empirical evidence demonstrating how development aid and international assistance impact various aspects of gender equality in Pakistan. This study employed time series data from 1995 to 2022 to evaluate the impact of foreign assistance on gender equality. It considered the ARDL, a co-integration approach, to test the model using e-views. Official development assistance and foreign aid (OFAA) negatively impact gender equality regarding education and female labour participation. In contrast, there is a positive and significant impact on gender equality regarding female political participation. However, no significant effect of OFAA on gender equality has been found regarding health inequalities. The findings provide significant evidence on how foreign assistance and aid effectiveness should be targeted, considering various sectors to enhance gender equality in Pakistan and contribute to evidence-based policymaking for more inclusive and successful assistance Initiatives. This study contributes to the debate on exploring the relationship between foreign aid and assistance and gender equality in Pakistan’s macro context.