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BY

Bilal Ahmad

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To test the proposition that Gross Domestic Product,

TariffRates adaptability and Inflation rate has a

significant/insignificant relation with Foreign Assistance.

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` Relationship between Foreign Aidand Gross

Domestic Product.

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` Tariffrates

` Dutch Disease (negative consequences in large

increase ofany thing)

` Volatility in consumption andinvestment

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` What will this thesis unleash ?

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` Why has foreign financialassistance hadbecome

amajorvariable to run this country.

` Therefore, foreign aidbecoming the centre of

attention.

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limitations

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1) Ho: To test the Hypothesis that Gross Domestic Product has ansignificant relation with Foreign Aid.

H1: To test the Hypothesis that Gross Domestic Product has not asignificant relation withconsumer Foreign Aid.

2) Ho: To test the Hypothesis that TariffRates have an insignificantrelation with Foreign Aid.

H1: To test the Hypothesis that TariffRates have a significantrelation with Foreign Aid.

3) Ho: To test the Hypothesis that Inflation Rates have aninsignificant relation with Foreign Aid.

H1: To test the Hypothesis that Inflation Rates have a significantrelation with Foreign Aid.

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` My sampling techniques are Convenience samplingand SnowBall Sampling.

` Convenience Sampling: The Sampling procedure used to obtainthose units or people most conveniently available.

` Snow Ball Sampling: A sampling procedure in whichinitialrespondents are selectedby probability methods andadditionalrespondents are obtainedfrom the information providedby theinitial respondents.

` Snow ball sampling techniques is used so that sample size andcosts can be reduced, where as convenience samplingis used

so that large number ofcompleted questionnaires can beobtained quickly and economically.

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Dependent variable: F.AID

-----------------------------------------------------------------------------

Standard T

Parameter Estimate Error Statistic P-Value

-----------------------------------------------------------------------------

CONSTANT -3.20046E9 7.71484E8 -4.14845 0.0060

GDP 0.000956376 0.0001775 5.3868 0.0017

INFLATION -3.82561E7 2.19016E7 -1.74672 0.1313

TARIFF 1.08015E7 8.37467E6 1.28979 0.2446-----------------------------------------------------------------------------

Analysis of Variance

-----------------------------------------------------------------------------

Source Sum of Squares Df Mean Square F-Ratio P-Value

-----------------------------------------------------------------------------

Model 1.89225E18 3 6.3075E17 15.64 0.0031

Residual 2.42005E17 6 4.03342E16-----------------------------------------------------------------------------

Total (Corr.) 2.13425E18 9

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R-squared = 88.6609 percent

R-squared (adjusted for d.f.) = 82.9914 percent

Standard Error of Est. = 2.00834E8Mean absolute error = 1.18549E8

Durbin-Watson statistic = 1.57117

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` The output shows the results offittingamultiple

linear regression model to describe the

relationship between Foreign Aidand 3

independent variables. The equation of the fittedmodelis

` Foreign AID = -3.20046E9 + 0.000956376*GDP -

3.82561E7*INFLATION + 1.08015E7*TARIFF

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` Foreign Aid with respect to Gross DomesticProduct

` A significant relationship exists between ForeignAid with respect to Gross Domestic Product.The p value is 0.0017 i.e. less than 0.10 whichmeans that there is a significant relation shipbetween the two variables. The t value is0.0001775 whichalso lie in the critical region.

Hence we can say that there is a significantrelationship between these two variables.

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` Foreign aid with respect to INFLATION.

` According to the results of the regression analysis

the p value forcustomer service orientation came

out to be 0.1313 whichis more than 0.10 whichproves the fact true that there is no significant

relationship between consumerforeign aidand

inflation. Then the t value came out to 2.19016

whichalso again show the insignificantrelationship between the two variables.

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Foreign aid with respect to Tariff Rates

According to the multiple regression models the p

value is 0.2446

whichis again more than 0.10 which shows thatthere is no significant relationship between foreign

aidand tariffrates. The t value is also 8.37467

whichagain lie in the rejection region which shows

that there is a negative relationship between thesetwo variables.