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Is Economic Growth Inclusive in Punjab, Pakistan? A District Level Assessment Using the Composite Index (Article)

Author

Listed:
  • Ghulam Mohey-ud-din

    (The Urban Sector Planning and Management Services Unit (the Urban Unit), Lahore.)

  • Khadija Ikram

    (The Urban Sector Planning and Management Services Unit (the Urban Unit), Lahore.)

Abstract

This paper aims to develop a composite Inclusive Growth Index (IGI) for 36 districts of Punjab, incorporating six overarching dimensions including (i) economic, (ii) amenities, (iii) gender equity and financial inclusion, (iv) human development (v) governance and (vi) sustainability. Following the OECD’s Handbook of Composite Indices, the study uses a minmax approach for the normalisation of indicators followed by the weighted aggregation using Principal Component Analysis (PCA) for assigning weights to indicators in each dimension in the composite index. The study ranks the districts as out-performing, average-performing, and lagging districts in terms of social inclusion. According to the ranking, the central and northern districts of Punjab such as Lahore, Gujrat, and Rawalpindi, etc. are scoring high on IGI, while districts falling in South Punjab such as Rajanpur, Dera Ghazi Khan, and Muzaffargarh, etc. are lagging. The result of the study highlights the areas and dimensions of social inclusion where the districts are lacking and, consequently, the policymakers and planners need to focus on these.

Suggested Citation

  • Ghulam Mohey-ud-din & Khadija Ikram, 2023. "Is Economic Growth Inclusive in Punjab, Pakistan? A District Level Assessment Using the Composite Index (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(2), pages 199-222.
    • Handle: RePEc:pid:journl:v:62:y:2023:i:2:p:199-222
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    References listed on IDEAS

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    1. Dorosh, Paul A. & Malik, Sohail J., 2006. "Transitions Out of Poverty: Drivers of Real Income Growth for the Poor in Rural Pakistan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25387, International Association of Agricultural Economists.
    2. World Economic Forum, 2017. "The Inclusive Growth and Development Report 2017," Working Papers id:11638, eSocialSciences.
    3. Suresh Chand Aggarwal, 2021. "Inclusiveness and the Progress of Indian States: Evidence from Inclusive Development Index Between 2011 and 2018," Indian Journal of Human Development, , vol. 15(2), pages 200-228, August.
    4. Timothy Besley & Miguel Coelho & John Van Reenen, 2013. "Investing for Prosperity: Skills, Infrastructure and Innovation," National Institute Economic Review, National Institute of Economic and Social Research, vol. 224(1), pages 1-13, May.
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    More about this item

    Keywords

    Composite Index; Inclusive Growth; Principal Component Analysis; Punjab–Pakistan;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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