Long-Run Relationship between Poverty and Macroeconomic Variables in Pakistan

Actual Problems of Economics, Vol. 2, No. 2, 2012

7 Pages Posted: 16 Aug 2012

See all articles by Muhammad Naeem Akhtar

Muhammad Naeem Akhtar

affiliation not provided to SSRN

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Nadeem Safwan

Foundation University

Abrar Ahmad

affiliation not provided to SSRN

Date Written: August 16, 2012

Abstract

This study examines the long-run relationship between poverty and economic indicators in Pakistan. Data from 1972 to 2010 were used to analyze the relationship between various economic variables and poverty. The economic indicators include consumer price index, literacy rate and population growth. Head count rate was used to measure poverty. The statistical techniques used include unit root Augmented Dickey-Fuller test (for checking the stationary data) & Johansen's cointegration test for the long-run relationship. The study found the correlation between all the economic factors and poverty, which means that the economic performance indicators are pertinent predictors of poverty. This can help in developing poverty alleviation strategies.

Keywords: economic indicators, causality, literacy rate, population growth, Johansen's cointegration

Suggested Citation

Akhtar, Muhammad Naeem and Hunjra, Ahmed Imran and Safwan, Nadeem and Ahmad, Abrar, Long-Run Relationship between Poverty and Macroeconomic Variables in Pakistan (August 16, 2012). Actual Problems of Economics, Vol. 2, No. 2, 2012. Available at SSRN: https://ssrn.com/abstract=2130355

Muhammad Naeem Akhtar

affiliation not provided to SSRN ( email )

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Nadeem Safwan

Foundation University ( email )

islamabad
Pakistan

Abrar Ahmad

affiliation not provided to SSRN ( email )

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