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Economic Growth and Rural Poverty in Pakistan: A Panel Dataset Analysis

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  • Shujaat Farooq

    (Pakistan Institute of Development Economics (PIDE))

  • Usman Ahmad

    (Pakistan Institute of Development Economics (PIDE))

Abstract

The relationship between growth and poverty is complex in Pakistan, where economic growth has not always been translated into poverty reduction. In the present work, three waves of a panel/longitudinal household survey, conducted between 2001 and 2010, were used to analyze poverty trajectories as well as the relationship between their patterns and economic growth. The findings from the panel survey reveal that more than half of the rural population remained in the state of poverty at least for one period. Poverty is transient in nature, as moving into and out of poverty is a common phenomenon in rural Pakistan. The high-growth period of 2001–2004 was not pro-poor, whereas the low-growth period of 2005–2010 was pro-poor despite the political and economic challenges. The findings reveal that policy interventions for the chronically poor may not be the same as those for the impoverished and transitory poor.

Suggested Citation

  • Shujaat Farooq & Usman Ahmad, 2020. "Economic Growth and Rural Poverty in Pakistan: A Panel Dataset Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1128-1150, September.
    • Handle: RePEc:pal:eurjdr:v:32:y:2020:i:4:d:10.1057_s41287-020-00259-y
    DOI: 10.1057/s41287-020-00259-y
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    Cited by:

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    2. Shujaat Farooq & Durr-e Nayab, 2023. "The Role of BISP’s Unconditional Cash Transfers in Alleviating Extreme Poverty in Pakistan: A Quasi-Experimental Analysis for the Period 2011–2019," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(2), pages 439-464, April.
    3. Antonín Vaishar & Milada Šťastná & Hilda Kramáreková, 2022. "Moravian–Slovak Borderland: Possibilities for Rural Development," Sustainability, MDPI, vol. 14(6), pages 1-16, March.

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