IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v12y2023i4p672-681.html
   My bibliography  Save this article

Cross-Border Support: A Solution to Poverty and Inequity in Pakistan

Author

Listed:
  • Sana Ashraf

    (PST, GGPS, Muhammad Pur Khokhar, Pakistan)

  • Shahroz Ashraf

    (Assistant Director, State Bank of Pakistan, Banking Services Corporation (BSC) Multan, Pakistan)

  • Asad Abbas

    (Lecturer in Economics, Department of Economics, COMSATS University Islamabad, Vehari Campus, Pakistan)

  • Dr Muhammad Ramzan Sheikh

    (Professor of Economics, School of Economics, Bahauddin Zakariya University Multan, Pakistan)

Abstract

This study aims to examine the impact of foreign resources on alleviating poverty and inequality within the context of Pakistan. Utilizing secondary data spanning from 1980 to 2022 the study employs the Autoregressive Distributed Lag Model (ARDL) to derive its findings. Two distinct models are employed to assess poverty and inequality. In the initial model the headcount ratio serves as the dependent variable with foreign direct investment foreign remittances foreign aid external aid gross fixed capital formation and labor force participation rate acting as independent variables. Meanwhile the second model employs the GINI coefficient as the dependent variable while maintaining the same set of independent variables as the poverty model. The long-term findings of the first model reveal a negative and statistically significant relationship between remittances foreign aid gross fixed capital formation labor force participation rate and poverty. Although GDP displays a negative relationship with poverty, it lacks statistical significance while foreign direct investment shows a positive relationship with poverty. Turning to the results of the second model Foreign Direct Investment remittances foreign aid GDP gross fixed capital formation and labor force participation rate are found to be significant and negatively associated with inequality. Conversely external debt demonstrates a positive and significant relationship with poverty.

Suggested Citation

  • Sana Ashraf & Shahroz Ashraf & Asad Abbas & Dr Muhammad Ramzan Sheikh, 2023. "Cross-Border Support: A Solution to Poverty and Inequity in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 672-681.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:4:p:672-681
    DOI: https://doi.org/10.61506/01.00265
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/768/731
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/768
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00265?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Amjad Ali & Marc Audi, 2016. "The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(4), pages 182-193, April.
    2. Herzer, Dierk & Nunnenkamp, Peter, 2012. "The effect of foreign aid on income inequality: Evidence from panel cointegration," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 245-255.
    3. Mr. Kadima D. Kalonji & Mr. Boileau Loko & Raj Nallari & Mr. Montfort Mlachila, 2003. "The Impact of External Indebtednesson Poverty in Low-Income Countries," IMF Working Papers 2003/061, International Monetary Fund.
    4. Amjad Ali & Marc Audi & Chan Bibi & Yannick Roussel, 2021. "The Impact of Gender Inequality and Environmental Degradation on Human Well-being in the Case of Pakistan: A Time Series Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(2), pages 92-99.
    5. Steven Ongena & Shusen Qi & Fengming Qin, 2015. "Impact of Foreign Bank Presence on Foreign Direct Investment in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(4), pages 40-59, July.
    6. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
    7. Gyamfi, Bright Akwasi & Agozie, Divine Q. & Bekun, Festus Victor, 2022. "Can technological innovation, foreign direct investment and natural resources ease some burden for the BRICS economies within current industrial era?," Technology in Society, Elsevier, vol. 70(C).
    8. Anisa Shamim & Pervaiz Azeem & Syed M. Muddassir Abbas Naqvi, 2014. "Impact of Foreign Direct Investment on Poverty Reduction in Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 465-490, October.
    Full references (including those not matched with items on IDEAS)

    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. repec:rfh:jprjor:v:8:y:2022:i:2:p:1-15 is not listed on IDEAS
    2. Fatima Hanif & Nosheen Sarwat & Muhammad Rafique, 2022. "Past Abusive Supervision, Hindrance Appraisal And Posttraumatic Stress: The Moderating Role Of Social Support," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 212-219, June.
    3. Marc Audi & Marc Poulin & Khalil Ahmad & Amjad Ali, 2025. "Modeling Disaggregate Globalization to Carbon Emissions in BRICS: A Panel Quantile Regression Analysis," Sustainability, MDPI, vol. 17(6), pages 1-24, March.
    4. Marc Audi & Amjad Ali, 2023. "The Role of Environmental Conditions and Purchasing Power Parity in Determining Quality of Life among Big Asian Cities," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 292-305, May.
    5. Musakwa Mercy T. & Odhiambo Nicholas M. & Nyasha Sheilla, 2021. "The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 7(2), pages 31-49, December.
    6. Muhammad Ashraf & Arslan Ali Raza & Muhammad Ishaq, 2022. "A Novel Approach Of Social Media Analytics For Predicting National Consumer Confidence Index," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 220-234, June.
    7. Muhammad Hatim & Zerish Tasleem & Muhammad Nadeem, 2022. "The Influence Of Education And Health On Rural Household Poverty: A Moderating Role Of Culture In Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 120-133, June.
    8. repec:rfh:jprjor:v:8:y:2022:i:2:p:34-53 is not listed on IDEAS
    9. repec:rfh:jprjor:v:7:y:2021:i:4:p:41-49 is not listed on IDEAS
    10. repec:rfh:jprjor:v:8:y:2022:i:1:p:18-30 is not listed on IDEAS
    11. Hafiz Muhammad Abubakar Siddique & Saira Nazir & Ghulam Mohey-Ud-Din & Adiqa K. Kiani, 2022. "The Impact Of Poverty On Human Health: A Panel Data Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 113-120, March.
    12. Shazia Sana & Shahnawaz Malik & Muhammad Ramzan Sheikh, 2022. "Investigating The Effectiveness Of Channels Of Monetary Transmission Mechanism In Pakistan: An Application Of Var Model, Impulse Response Function And Variance Decomposition," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 160-184, June.
    13. Musakwa Mercy T. & Odhiambo Nicholas M. & Nyasha Sheilla, 2021. "The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 7(2), pages 31-49, December.
    14. Roussel, Yannick & Audi, Marc, 2024. "Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe," MPRA Paper 121529, University Library of Munich, Germany.
    15. repec:rfh:jprjor:v:7:y:2021:i:4:p:1-10 is not listed on IDEAS
    16. Audi, Marc & Sulehri, Fiaz Ahmad & Ali, Amjad & Al-Masri, Razan, 2022. "The role of terrorist events in determining stock returns in Pakistan: covering most vibrant era 2003-2013," MPRA Paper 115167, University Library of Munich, Germany, revised 26 Oct 2022.
    17. Shahzad Hassan & Norazah Mohd Suki & Maria Akhtar & Khan Zaman Khan & Naveed Hassan, 2022. "What Is The Role Of Humble Leadership In Shaping Customer Citizenship Behavior And Employee Innovative Work Behavior? Evidence From Service Sector," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 235-243, June.
    18. Bibi, Chan & Ali, Amjad, 2021. "Do remittances impact human development in developing countries? A panel analysis of selected countries," MPRA Paper 114864, University Library of Munich, Germany.
    19. Insha Kunwal & Muhammad Ramzan Sheikh & Muhammad Zahir Faridi & Muhammad Imran Mushtaq, 2023. "Urbanization, Energy Consumption and Environmental Quality in Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 372-386.
    20. Ahmad Latif & Rimsha Javed, 2021. "Does Economic Growth, Population Growth And Energy Use Impact Carbondioxide Emissions In Pakistan? An Ardl Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 85-91, June.
    21. repec:rfh:jprjor:v:8:y:2022:i:4:p:143-151 is not listed on IDEAS
    22. Ullah, Asad & Ali, Amjad, 2024. "Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis," MPRA Paper 121291, University Library of Munich, Germany.
    23. Alim, Wajid & Ali, Amjad & Minhas, Amna Shafiq, 2022. "The Impact of Leverage on the Firm Performance: A Case of Fertilizers Sector of Pakistan," MPRA Paper 114200, University Library of Munich, Germany.
    24. repec:rfh:jprjor:v:9:y:2023:i:2:p:103-116 is not listed on IDEAS
    25. repec:rfh:jprjor:v:8:y:2022:i:2:p:23-33 is not listed on IDEAS
    26. repec:rfh:jprjor:v:8:y:2022:i:4:p:335-343 is not listed on IDEAS
    27. Mehmood, Aqsa & Siddique, Hafiz Muhammad Abubakar & Ali, Amjad, 2022. "Impact of Health on Worker Productivity: Evidence from South Asia," MPRA Paper 113557, University Library of Munich, Germany.
    28. Musakwa Mercy T. & Odhiambo Nicholas M. & Nyasha Sheilla, 2021. "The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 7(2), pages 31-49, December.
    29. Muhammad Shafiq & Adeel Akhtar & Muhammad Ismail & Muhammad Awais, 2021. "Lean Management Readiness Assessment Framework For Humanitarian Organizations Supply Chain Management," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 151-171.

    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:rfh:bbejor:v:12:y:2023:i:4:p:672-681. 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: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.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.