Poverty, Income Inequality, and Growth in Pakistan: A Pooled Regression Analysis
Ahmed Raza Cheema () and
Ahmed Raza Cheema ()
Additional contact information
Ahmed Raza Cheema: Lecturer in Economics, Department of Economics, University of Sargodha, Pakistan.
Ahmed Raza Cheema: Foreign Faculty Professor, Department of Economics, University of Sargodha, Pakistan.
Lahore Journal of Economics, 2012, vol. 17, issue 2, pages 137-157
This study estimates a set of fixed effects/random effects models to ascertain the long-run relationships between poverty, income inequality, and growth using pooled data from eight household income and expenditure surveys conducted between 1992/93 and 2007/08 in Pakistan. The results show that growth and inequality play significant roles in affecting poverty, and that the effect of the former is substantially larger than that of the latter. Furthermore, growth has a significant positive impact on inequality. The results also show that the absolute magnitude of net growth elasticity of poverty is smaller than that of gross growth elasticity of poverty, suggesting that some of the growth effect on poverty is offset by the rise in inequality. The analysis at a regional level shows that both the gross and net growth elasticity of poverty are higher in rural areas than in urban areas, whereas the inequality elasticity of poverty is higher in urban areas than in rural areas. At a policy level, we recommend that, in order to reduce poverty, the government should implement policies focusing on growth as well as adopting strategies geared toward improving income distribution.
Keywords: Poverty; inequality; growth; pooled data; Pakistan. (search for similar items in EconPapers)
JEL-codes: I32 O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
http://18.104.22.168/JOURNAL/LJE%20Vol%2017-2%20F ... 2/06%20Cheema%20.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:lje:journl:v:17:y:2012:i:2:p:137-157
Access Statistics for this article
Lahore Journal of Economics is currently edited by July-Dec
More articles in Lahore Journal of Economics from Department of Economics, The Lahore School of Economics Contact information at EDIRC.
Series data maintained by Shahid Salahuddin ().