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Influencing Factors of Poverty in Pakistan: Time Series Analysis

Author

Listed:
  • Rizwan Akhtar

    (MS Student, China Agricultural University, Beijing, China,
    Lecturer, Department of Economics, Karakoram International University, Gilgit-Baltistan, Pakistan,)

  • Hongman Liu

    (College of Economics and Management, China Agricultural University, Beijing, China,)

  • Amjad Ali

    (Department of Economics, Karakoram International University, Gilgit-Baltistan, Pakistan.)

Abstract

Poverty is one of the emerging problems being discussed and debated in various developed and developing countries including Pakistan. This study investigates influencing factors of poverty in Pakistan and discusses the theoretical linkages between poverty and its main macroeconomic variables. For this Johansen co-integration technique has been applied with multi diagnostics tests. The macroeconomic variables taken in this study are agricultural ratio to gross domestic product (GDP), ratio of Foreign Direct Investment (FDI) to GDP, ratio of the primary education, ratio of the domestic credit to private sector and military expenditure as percentage of GDP. Results of the study show that all these variables have significant effect on poverty. In the case of agricultural ratio to GDP, an increase in agricultural output leads to decrease poverty. Education enrollment also has significant negative impact on poverty in long run. It helps in reducing poverty and improving the socio economic status of both the individuals as well as the society. Domestic credit has also significant negative impact on poverty but military expenditure has significant positive impact on poverty in Pakistan.

Suggested Citation

  • Rizwan Akhtar & Hongman Liu & Amjad Ali, 2017. "Influencing Factors of Poverty in Pakistan: Time Series Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 215-222.
    • Handle: RePEc:eco:journ1:2017-02-29
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Hatim & Zerish Tasleem & Muhammad Nadeem, 2022. "The Influence Of Education And Health On Rural Household Poverty: A Moderating Role Of Culture In Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 120-133, June.
    2. Mbulaheni Albert Dagume, 2021. "Factors Influencing Poverty in South Africa: Time Series Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 86-95.
    3. Mst. Asma Khatun & Farjana Misu & Mohammad Amirul Islam & Sheikh Mohammad Sayem, 2022. "Relationship between Poverty and Food Security: Empirical Evidence from the Enclave Area of Rural Bangladesh," Indian Journal of Human Development, , vol. 16(3), pages 448-467, December.

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    More about this item

    Keywords

    Headcount Index; Foreign Direct Investment; Economic Growth; Pakistan;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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