Poverty, inflation and economic growth: empirical evidence from Pakistan
AbstractThis study aims to investigate the role of economic growth and inflation in explaining the prevalence of poverty in Pakistan. ARDL bound testing approach to co-integration confirms the existence of long run relationship among the variables of poverty, economic growth, inflation, investment and trade openness over the period of 1972-2008. Empirical results show that economic growth and investment have negative and inflation has positive impact on poverty. The effect of trade openness on poverty is insignificant in this study. The short run analysis reveals that economic growth has negative and inflation has positive impact on poverty whereas the role of investment and trade openness in poverty reduction in short run is not significant.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34290.
Date of creation: 2011
Date of revision: 2011
Publication status: Published in World Applied Sciences Journal 7.14(2011): pp. 1058-1063
Poverty; Inflation; Economic Grovvth; Pakistan; Macroeconomic Policy; Welfare; Trade Openness;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-07 (All new papers)
- NEP-FDG-2011-11-07 (Financial Development & Growth)
- NEP-MAC-2011-11-07 (Macroeconomics)
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