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One of the important components of foreign capital is foreign aid that helps to address macroeconomic
issues of recipient country. Macroeconomic disorders such as poverty and unemployment are tackled
through foreign aid. Need of time is to evaluated the factors that affect the flow of foreign aid. Data of
study was gathered from 1980 to 2019. Findings of study confirmed negative relationship of control of
corruption on foreign aid. Likewise, negative relationship was found with political stability and
government effectiveness with foreign aid. As a policy implication, government is to focus on settling down
internal unrest on account of such governance indictors. It is so to gain more benefit from the same to
overcome macroeconomic disorders.
KHAWAJA ASIF MEHMOOD, ALI AZAM, RABIA HAFEEZ. (2020) Analyses of Governance Indicators Affecting Flow of Foreign Aid: An ARDL Approach, International Review of Management and Business Research, Volume 9, Issue 3.
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