Poverty, Inflation and Economic Growth: Empirical Evidence from Pakistan

World Applied Sciences Journal, Vol. 14, No. 7, pp. 1058-1063, 2011

5 Pages Posted: 31 Oct 2011

See all articles by Dr. Muhammad Irfan Chani

Dr. Muhammad Irfan Chani

COMSATS University Islamabad

Zahid Pervaiz

National College of Business Administration and Economics (NCBA&E)

Sajjad Ahmad Jan

Independent

Amjad Ali

State Bank of Pakistan

Amatul R. Chaudhary

National College of Business Administration and Economics (NCBA&E)

Date Written: september 30, 2011

Abstract

This study aims to investigate the role of economic growth and inflation in explaining the prevalence of poverty in Pakistan. ARDL bound testing approach to co-integration confirms the existence of long run relationship among the variables of poverty, economic growth, inflation, investment and trade openness over the period of 1972-2008. Empirical results show that economic growth and investment have negative and inflation has positive impact on poverty. The effect of trade openness on poverty is insignificant in this study. The short run analysis reveals that economic growth has negative and inflation has positive impact on poverty whereas the role of investment and trade openness in poverty reduction in short run is not significant.

Keywords: Poverty, Inflation, Economic Grovvth, Pakistan, Macroeconomic Policy, Welfare, Trade Openness

JEL Classification: I30, C32, F41

Suggested Citation

Chani, Muhammad Irfan and Pervaiz, Zahid and Jan, Sajjad Ahmad and Ali, Amjad and Chaudhary, Amatul R., Poverty, Inflation and Economic Growth: Empirical Evidence from Pakistan (september 30, 2011). World Applied Sciences Journal, Vol. 14, No. 7, pp. 1058-1063, 2011. Available at SSRN: https://ssrn.com/abstract=1951510

Muhammad Irfan Chani (Contact Author)

COMSATS University Islamabad ( email )

Mailsi Road
Off Multan Road
Vehari, Punjab
Pakistan

HOME PAGE: http://ww3.comsats.edu.pk/faculty/FacultyDetails.aspx?Uid=19095

Zahid Pervaiz

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, Punjab
Pakistan

Sajjad Ahmad Jan

Independent ( email )

No Address Available

Amjad Ali

State Bank of Pakistan ( email )

I.I. Chundrigar Road
KARACHI, Sindh 74000
Pakistan

Amatul R. Chaudhary

National College of Business Administration and Economics (NCBA&E) ( email )

40/E-1, Gulberg-III
National College of Business Administration & Econ
Lahore, Punjab 54660
Pakistan

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