Poverty, Income Inequality, and Growth in Pakistan:
A Pooled Regression Analysis

Cheema, Ahmed Raza; Sial, Maqbool H.

doi:10.35536/lje.2012.v17.i2.a6

Cited by 39 publications

(29 citation statements)

References 18 publications

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“…This coefficient shows the direct and significant impact of this indicator on the reduction of poverty in Tunisia. Our result is consistent with results of Cheema and Sial (2012); Ravallion and Chen (1996) and Lombardo (2008); Kakwani (2001) and Son (2007); Bourguignon (2003) and Son and Kakwani (2004) as well as Hassan (2015).…”

Section: Ardl Bounds Testing To Cointegrationsupporting

confidence: 92%

Cointegration Relationship between Growth, Inequality and Poverty In Tunisia

Khemili

Belloumi

2018

International Journal of Applied Economics, Finance and Account

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The aim of this paper is to investigate the direction of causality between poverty, inequality and economic growth in Tunisia using time series data covering the period 1970-2013. We use in this paper the ARDL bound testing approach to cointegration and Toda and Yamamoto (1995) modification of the Granger causality test. The result of bound testing reveals that there is an evidence of long-run relationship among the variables. In long term, we conclude that there is a positive relationship between income inequality and poverty. However, in the short-run there is a positive relation between inequality and growth to poverty. The results of Toda and Yamamoto indicate that there is a unidirectional causal relationship running from economic growth to poverty. We, therefore, recommend that governments should intense efforts in reinforcement the economic growth and should pay attention on its sustainability. In addition, we found unidirectional causality between poverty and inequality. However, on the other hand, the results of this paper indicate a bidirectional causality between inequality and economic growth. Therefore, the political leaders should focus their efforts on the middle class and poorest to reduce inequality and, therefore, support the growth that can reduce poverty.

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Section: Ardl Bounds Testing To Cointegrationsupporting

confidence: 92%

Cointegration Relationship between Growth, Inequality and Poverty In Tunisia

Khemili

Belloumi

2018

International Journal of Applied Economics, Finance and Account

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“…Ncube, Anyanwu and Hausken [33], in their study from 2013, on inequality, growth and poverty in the Middle East and North Africa (MENA), showed that income inequality reduces economic growth and increases poverty in the region. A similar positive relationship was supported by [34] in the case of Pakistan between 1993 and 2008, showing that inequality plays a significant role in increasing the poverty rate.…”

Section: Income Inequalitysupporting

confidence: 57%

Poverty—A Challenge for Economic Development? Evidences from Western Balkan Countries and the European Union

et al. 2020

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During the last few decades, economists have tried to find a solution to eradicate poverty, especially since the United Nations’ Sustainable Development Goals were launched. The target of Goal 1 is to end poverty in all its forms everywhere. While income inequality and unemployment have played a major part in contributing to poor wellbeing in the world, other factors such as political instability, a lack of good investment opportunities, and living conditions have contributed to it as well. Thus, in this work, the authors analyze the factors that impact poverty and compare these results between countries within the European Union and post-communist countries that include the Western Balkan (WB) countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia. The method used consists of both descriptive statistics and multiple regression analysis using the fixed effect model where poverty is taken as the dependent variable. The data used in this study are gathered from the World Bank and Legatum Prosperity, during the period between 2009 and 2018. The results show that income inequality does indeed impact the further progress of poverty for both the EU and WB, while economic development in terms of GDP is shown to have a more significant impact on EU than in WB, where the most significant impact was through income per capita. Other factors such as education, investment environment, and especially unemployment also significantly impacted on decreasing the poverty rate in both economic zones.

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“…Overall impact of population shift on poverty reduction appears positive. Cheema and Sial (2012) develop a triangle of poverty, growth and income inequality. Pooled data from eight household surveys of 1992-93 and 2007-08 is used for the study.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Economic Reforms on Social Sector of Pakistan: An Empirical Analysis

Shakeel

Hayat

2020

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This study evaluates the impact of economic reforms on the social sector of Pakistan by constructing the index of economic reforms of the key sectors of the economy for the period 1971 to 2015 using ARDL. For analysis purpose two separate models have been estimated for poverty and income inequality. The results of the study reveal that economic reforms impact poverty and income inequality negatively and significantly. The negative relationship of economic reforms show that economic reforms are helpful for improving the social sector of Pakistan. Moreover, both the models also show convergence from short run to long run period. The foreign direct investment exerts positive impact on poverty and gross fixed capital has positive impact on both poverty and income inequality. The relationship between population growth and income inequality is positive and significant. Moreover, age dependency ratio and life expectancy reduces both inequality and poverty respectively in the long run. The role of crime appears to be insignificant in case of income inequality. The study suggests that government of Pakistan should formulate and implement pro poor policies and introduce reforms for providing health and educational facilitates. Furthermore, the introduction food subsidy to the poor will also be helpful in reducing the intensity of poverty and inequality in Pakistan.

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Poverty, Income Inequality, and Growth in Pakistan: A Pooled Regression Analysis

Cited by 39 publications

References 18 publications

Cointegration Relationship between Growth, Inequality and Poverty In Tunisia

Cointegration Relationship between Growth, Inequality and Poverty In Tunisia

Poverty—A Challenge for Economic Development? Evidences from Western Balkan Countries and the European Union

Impact of Economic Reforms on Social Sector of Pakistan: An Empirical Analysis

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