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The growth, inequality and poverty triangle: new evidence from a panel of SAARC countries

Author

Listed:
  • Khalid Zaman
  • Iqtidar Ali Shah
  • Muhammad Mushtaq Khan
  • Mehboob Ahmad

Abstract

This paper examines the impact of growth and income inequality on poverty for a panel of five selected South Asian Association For Regional Cooperation (SAARC) countries; namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka; over the period of 1990-2008. Using Pedroni's (2004) test for panel cointegration, it was found that there is a long-run relationship between poverty, growth and income inequality. The estimated long-run elasticities indicates that increase in economic growth and income inequality contributes to a fall and rise in poverty, respectively. It was also found that the impact of income inequality in increasing poverty is comparatively greater than that of economic growth in reducing poverty in SAARC countries.

Suggested Citation

  • Khalid Zaman & Iqtidar Ali Shah & Muhammad Mushtaq Khan & Mehboob Ahmad, 2012. "The growth, inequality and poverty triangle: new evidence from a panel of SAARC countries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(5), pages 485-500.
    • Handle: RePEc:ids:ijecbr:v:4:y:2012:i:5:p:485-500
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    Citations

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    Cited by:

    1. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth and poverty in forecasting framework: Pakistan's future in the year 2035," Economic Modelling, Elsevier, vol. 30(C), pages 468-491.
    2. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface," Economic Modelling, Elsevier, vol. 29(4), pages 1220-1227.
    3. Saboor, Abdul & Khan, Atta Ullah & Hussain, Abid & Ali, Ikram & Mahmood, Khalid, 2015. "Multidimensional deprivations in Pakistan: Regional variations and temporal shifts," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 57-67.
    4. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.

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