An estimation of the macroeconomic determinants of income poverty in Pakistan? Evidence from a non‐linearARDLapproach

Abstract

Poverty is considered a complex and multifaceted phenomenon that can be subjected to various socio-economic factors. This study aims to assess the potential asymmetric influence of foreign direct investment (FDI) and trade openness, controlling for economic growth, health expenditure, and population size on income poverty in Pakistan from 1972 to 2018 by employing the Non-Linear Autoregressive-Distributed Lag (NARDL) approach. The results exhibit the presence of long-run asymmetries among FDI, trade openness, and income poverty. The results also reveal that poverty reacts to the positive and negative trends in FDI and trade openness atypically. Moreover, the findings also confirm that population growth and health expenditures ameliorate the deleterious repercussions of income poverty. For policy-makers having an interest in asymmetric nexus among FDI, trade openness, and income poverty. As per the findings, relevant policy level suggestions are recommended.

The Impact of Income Inequality, Renewable Energy Consumption, Non-Renewable Energy Consumption and Per Capita Income on Poverty: Evidence from BRICS Economies

“…The BRICS countries could take a more active role in the fight against poverty by using the information and technologies necessary for growth through sustainable development. Similar findings were reported for the case of Mexico by Garza-Rodriguez (2018), for the case of Nigeria by Dada and Fanowopo (2020), and for the case of Pakistan by Chishti, Rehman and Murshed (2021). The error correction term is -0.372, and it is statistically significant.…”

Modelling the role of fiscal and monetary policy instruments on carbon emission in non‐linear framework: A case of emerging economy

“…If the manufacturers start employing environmentally friendly techniques of production to bridge up the gap between demand and supply, then the country will have both environmental and economic benefits. As many producers and new investors are hesitant to embrace green technologies due to inadequate information, the policymakers should make them cognizant to their economic and environmental benefits (Chishti, Ahmad, Rehman, et al., 2021; Chishti, Ahmed, Murshed, et al., 2021; Chishti, Rehman, et al., 2021). In addition to this, government can support ‘green energy adoption perspective’ by providing subsidies on renewable energy sources, increased investment on clean technologies and imposing taxes on petroleum products and other CO 2 emitters.…”

“…(2021) and Chishti, Rehman et al. (2021) claimed that contractionary fiscal and monetary policies are more efficient than expansionary monetary and fiscal policies in alleviating the deleterious impacts of greenhouse emissions. Similarly, the results of Noureen et al.…”

Spatial distribution of poverty in Pakistan: an asset-based approach

“…PCA and MCA are two approaches which are overwhelmingly applied to this sort of poverty as Filmer and Pritchett [26] and Rutstein and Johnson [51] have employed PCA to generate asset-based poverty index. But their studies do not take notice of the limitations of the PCA, which is applicable only in the case of continuous variables, and it fails to provide reliable weights when variables are not continuous [10,12,13,15,17,18,23,56,57]. It is usually witnessed that asset variables are found in binary and categorical form.…”

“…Poverty is generally defined as income or expenditure insufficiency, but the economic condition of a household also depends on its real and financial asset holdings. To be poor means not only to have a low income but to lack of assets, social services and voice in government [12,17]. Poverty is normally measured using income as a welfare indicator, as it provides some indication about the capability of individuals to achieve a certain standard of living and also information about income is more readily available information than for other variables.…”