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Does Decomposition of GDP Growth Matter for the Poor? Empirical Evidence from Pakistan

Author

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  • Ali, Safdar
  • Ahmad, Khalil
  • Ali, Amjad

Abstract

This paper examines how the economic growth of different sectors affects poverty in Pakistan uses the time series data over the period 1973-2010. The ARDL co-integration approach has been applied to investigate the impact of sectoral growth on aggregate as well as disaggregated poverty in the long run and short run. The results indicate that industrial growth reduces total, rural and urban poverty significantly while the performance of services sector affects the composition of poverty insignificantly. The agricultural sector growth has a negative impact on aggregate poverty while it has an insignificant impact on disaggregated poverty.

Suggested Citation

  • Ali, Safdar & Ahmad, Khalil & Ali, Amjad, 2019. "Does Decomposition of GDP Growth Matter for the Poor? Empirical Evidence from Pakistan," MPRA Paper 95666, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:95666
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    References listed on IDEAS

    as
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    5. Salman Syed Ali & Sayyid Tahir, 1999. "Dynamics of Growth, Poverty, and Inequality in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 837-858.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
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    8. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
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    11. Asif Sajid & Amjad Ali, 2018. "Inclusive Growth and Macroeconomic Situations in South Asia: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(3), pages 97-109, September.
    12. Audi, Marc & Ali, Amjad, 2017. "Socio-Economic Development, Demographic Changes and Total Labor Productivity in Pakistan: A Co-Integrational and Decomposition Analysis," MPRA Paper 77538, University Library of Munich, Germany.
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    More about this item

    Keywords

    Sectoral Growth; Rural Poverty; Urban Poverty; Co-integration;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • P46 - Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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