Impact of poor governance and income inequality of poverty in Pakistan

Zainab Akram (), Sajida Wajid (), Tahir Mahmood () and Shoaib Sarwar ()
Additional contact information
Zainab Akram: Lecturer, COMSATS Institute of Information Technology, Lahore, Pakistan
Sajida Wajid: Lecturer, Minhaj University, Lahore, Pakistan
Tahir Mahmood: Assistant Professor, University of Veterinary and Animal Sciences, Lahore, Pakistan
Shoaib Sarwar: Research Scholar, University of the Punjab, Lahore, Pakistan

Far East Journal of Psychology and Business, 2011, vol. 4 No 3 Paper 4 September, issue 4, 43-55

Abstract: The widespread poverty is due to two main reasons are poor governance and income inequality in Pakistan. Few studies have focused on the theoretical substantiation of impact of bad governance and income inequality on poverty but we do not find any study carrying empirical work on the impact of bad governance on poverty in Pakistan. This study is an empirical research that attempts to find out the long run and short run impact of poor governance and inequality in wealth and income distribution on poverty in Pakistan through time series analysis for the year 1984-2008. Autoregressive Distributive Lag (ARDL) Approach to Co integration is applied in order to find out the short run and long run relationship between the variables. Co integration between poverty, poor governance and income inequality is found in the present study. The results of this study also confirm the positive relationship between poverty and income inequality both in short run and long run. Poor governance is found to positively affect poverty in the long run but in the short run it does not have significant impact on poverty in Pakistan. CUSUM and CUSUMQ stability tests are employed on the model and the results show there is a stable relationship between the variables indicating stability of the estimated model.

Keywords: Poverty; Poor Governance; Income Inequality; ARDL (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.fareastjournals.com/files/FEJPBV4N3P4.pdf (application/pdf)
http://www.fareastjournals.com/archive_detail.aspx?jid=18&aid=15 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fej:articl:v:4c:y:2011:i:4:p:43-55

Access Statistics for this article

More articles in Far East Journal of Psychology and Business from Far East Research Centre
Bibliographic data for series maintained by Jim Chau ( this e-mail address is bad, please contact ).