IDEAS home Printed from https://ideas.repec.org/a/pje/journl/article14winii.html
   My bibliography  Save this article

POVERTY REDUCTION IN PAKISTAN: The Role of Agricultural and Industrial Subsector’s Growth

Author

Listed:
  • Sadia ABBAS*
  • M. Masood AZEEM**
  • Khuda BAKHSH*
  • Alvina FATIMA*
  • Abdus SAMIE*

Abstract

The purpose of this study is to estimate poverty reducing impacts of growth on agricultural and industrial subsectors of Pakistan. Autoregressive Distributed Lag (ARDL) approach, to co-integration and Error Correction model (ECM) are applied to estimate the long-and short-run impacts on poverty reduction. The study uses the time series data from 1950 to 2010. The findings indicate that growth in minor crops leads to poverty reduction, both in short-and long-run. However, growth in major crops and livestock subsectors does not reduce poverty in the long-run. In the industrial sector, Mining and Quarrying (MQ) and the manufacturing subsectors reduce poverty, both in short-run and long-run. It is recommended that anti-poverty interventions should be prioritized for subsectors where poverty can be reduced, both in short-and long–run, such as, minor-crops subsector.

Suggested Citation

  • Sadia ABBAS* & M. Masood AZEEM** & Khuda BAKHSH* & Alvina FATIMA* & Abdus SAMIE*, 2014. "POVERTY REDUCTION IN PAKISTAN: The Role of Agricultural and Industrial Subsector’s Growth," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 24(2), pages 143-157.
    • Handle: RePEc:pje:journl:article14winii
    as

    Download full text from publisher

    File URL: http://aerc.edu.pk/wp-content/uploads/2016/08/Article_44Paper-586-II-Sadia-ABBAS-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rana Hasan & M. G. Quibria, 2004. "Industry Matters for Poverty: A Critique of Agricultural Fundamentalism," Kyklos, Wiley Blackwell, vol. 57(2), pages 253-264, May.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse, Mekonnen, 2003. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," World Development, Elsevier, vol. 31(1), pages 87-106, January.
    4. repec:ilo:ilowps:374049 is not listed on IDEAS
    5. Loayza, Norman V. & Raddatz, Claudio, 2010. "The composition of growth matters for poverty alleviation," Journal of Development Economics, Elsevier, vol. 93(1), pages 137-151, September.
    6. Günther, Isabel & Harttgen, Kenneth, 2009. "Estimating Households Vulnerability to Idiosyncratic and Covariate Shocks: A Novel Method Applied in Madagascar," World Development, Elsevier, vol. 37(7), pages 1222-1234, July.
    7. Ravallion, Martin, 1995. "Growth and poverty: Evidence for developing countries in the 1980s," Economics Letters, Elsevier, vol. 48(3-4), pages 411-417, June.
    8. Arup Mitra & Juan Pedro Schmid, 2008. "Growth and poverty in India: emerging dimensions of the tertiary sector," The Service Industries Journal, Taylor & Francis Journals, vol. 28(8), pages 1055-1076, October.
    9. 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.
    10. Christopher Johnson & John Formby & Hoseong Kim, 2011. "Economic growth and poverty: a tale of two decades," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4277-4288.
    11. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
    12. Alain de Janvry & Elisabeth Sadoulet, 2010. "Agricultural Growth and Poverty Reduction: Additional Evidence," The World Bank Research Observer, World Bank, vol. 25(1), pages 1-20, February.
    13. Sokoloff, Kenneth L. & Dollar, David, 1997. "Agricultural Seasonalily and the Organization of Manufacturing in Early Industrial Economies: The Contrast Between England and the United States," The Journal of Economic History, Cambridge University Press, vol. 57(2), pages 288-321, June.
    14. Aravindakshan, Sreejith & Sherief, Aliyaru Kunju, 2010. "Connotation of minor millet biodiversity and indirect payments in tribal homesteads in the backdrop of climate change," MPRA Paper 28136, University Library of Munich, Germany.
    15. Atta Khan & Abdul Saboor & Abid Hussain & Shumaila Sadiq & Abdul Mohsin, 2014. "Investigating Multidimensional Poverty across the Regions in the Sindh Province of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 515-532, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seng Sothan, 2017. "Causality between foreign direct investment and economic growth for Cambodia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1277860-127, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
    2. Ismael Ahamdanech & Carmelo García-Pérez & Mercedes Prieto-Alaiz, 2020. "A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case," Sustainability, MDPI, vol. 12(5), pages 1-16, February.
    3. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    4. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2014. "Production interdependencies and poverty reduction across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 42(C), pages 146-158.
    5. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    6. Enisan, Akinlo Anthony & Olalekan, Okunlola Charles, 2022. "On the Interaction Between Export Promotion and Agricultural Growth in Poverty Reduction in Nigeria: Empirical Evidence for The Period 1980-2016," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(1), pages 109-135, March.
    7. Ms. Valerie Cerra & Mr. Ruy Lama & Norman Loayza, 2021. "Links Between Growth, Inequality, and Poverty: A Survey," IMF Working Papers 2021/068, International Monetary Fund.
    8. Félix, Elisabete Gomes Santana & Belo, Teresa Freitas, 2019. "The impact of microcredit on poverty reduction in eleven developing countries in south-east Asia," Journal of Multinational Financial Management, Elsevier, vol. 52.
    9. Hichem AYAD, 2016. "Poverty, Inequality And Economic Growth In Algeria: An Ardl Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 5(1), pages 1-20, JULY.
    10. Alvina Fatima & Muhammad Masood Azeem & Sadia Abbas & Sultan Ali Adil, 2014. "Linkages between Services Sector’s Growth and Poverty in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(2), pages 225-240, September.
    11. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    12. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    13. Montalvo, Jose G. & Ravallion, Martin, 2010. "The pattern of growth and poverty reduction in China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 2-16, March.
    14. Ohlan RAMPHUL, 2013. "Agricultural exports and the growth of agriculture in India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(5), pages 211-218.
    15. Simplice Asongu & Christian Nguena, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: Lessons, Policies and Implications," Working Papers of the African Governance and Development Institute. 14/038, African Governance and Development Institute..
    16. Fiona Tregenna, 2012. "What are the distributional implications of halving poverty in South Africa when growth alone is not enough?," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2577-2596, July.
    17. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    18. Dieu Ne Dort Talla Fokam & Paul Ningaye & Celestin Chameni Nembua, 2020. "Ethnic Diversity Management and Poverty in Developing Countries," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 19(1), pages 47-60, June.
    19. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    20. Cazzuffi, Chiara & Pereira-López, Mariana & Soloaga, Isidro, 2017. "Local poverty reduction in Chile and Mexico: The role of food manufacturing growth," Food Policy, Elsevier, vol. 68(C), pages 160-185.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pje:journl:article14winii. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Samina Khalil (email available below). General contact details of provider: https://edirc.repec.org/data/aekarpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.