Price Levels and Poverty Nexus: A Case Study of Pakistan

Arshad, Muhammad; Sheikh, Muhammad Ramzan; Akhtar, Muhammad Hanif; Mushtaq, Muhammad Imran

doi:10.26710/reads.v5i4.915

READS

2020

DOI: 10.26710/reads.v5i4.915

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Price Levels and Poverty Nexus: A Case Study of Pakistan

Muhammad Arshad¹,

Muhammad Ramzan Sheikh²,

Muhammad Hanif Akhtar³

et al.

Abstract: The study has examined the relationship between price levels and poverty over the period of 1982-2015 in Pakistan by employing Auto Regressive Distributed Lag Model (ARDL). It is the pioneer empirical study on the topic in Pakistan. The study has revealed mixed findings between the price levels and poverty both at aggregated and disaggregated levels. The study has also suggested policies to reduce poverty according to the various price levels investigated in the assorted models.

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2024

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Does Price Level Increase Income Inequality in Pakistan? A Disaggregated Analysis

Arshad,

Sheikh,

Arif

2024

BBE

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The crucial emphasis of economic policies is to enhance socio-c wellbeing of the people in an economy. If the society is economically polarized it hampers the impact of economic policies. The crucial economic problem about which fewer economists gutsy to talk is income inequality in the world because it is the answer to a pinching question that who will benefits from the economic growth in an economy. Despite the generation of trillions of dollars each year in the world, a huge population is deprived of basic needs such as food, sanitation, security, health and education etc. When it comes to the effect of inflation on masses the situation further aggravates. Escalated price levels deprive more people from essential goods and lead towards increasing income inequality. This study has tried to estimate the impact of inflation on income distribution in Pakistan. The data was collected from Pakistan Economic Survey and Handbook of Statistics by SBP for a period of 1990 to 2022. The present study has applied Auto Regressive Distributed Lag Model (ARDL) to estimate the linkage among price levels and income inequality in Pakistan. The findings of the study have revealed both positive and negative linkage among constituents of the CPI and the income inequality. The novelty of this study is on two grounds. Firstly, the study has dissolved Consumer Price Index (CPI) into its constituents, and their Impact on income inequality has been examined, as far as finest information available to us this has never been investigated in Pakistan before. Secondly, the study has applied two proxies the GINI coefficient and Mean Log Deviation (MLD) to estimate income inequality. Thirdly, we have applied the data splicing method[1] to make one base year of CPI from various base years that has been changed over the past years in Pakistan. The study offers some useful policy implications for policy formulation in Pakistan.

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Does Price Level Increase Income Inequality in Pakistan? A Disaggregated Analysis

Arshad,

Sheikh,

Arif

2024

BBE

View full text Add to dashboard Cite

show abstract

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Price Levels and Poverty Nexus: A Case Study of Pakistan

Cited by 1 publication

References 18 publications

Does Price Level Increase Income Inequality in Pakistan? A Disaggregated Analysis

Does Price Level Increase Income Inequality in Pakistan? A Disaggregated Analysis

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