Macroeconomic dynamics and magnitude of poverty: a comparative analysis of different regimes
Asma Nasim
International Journal of Economics and Business Research, 2016, vol. 12, issue 2, 119-135
Abstract:
The poverty level in Pakistan has been increasing and despite decades after independence it is still a very critical socioeconomic issue. This study examines the effects of macroeconomic variables (GDP, inflation, unemployment, and tax revenues) on the poverty rate in Pakistan since 1974 to 2014. Moreover, this study also investigated the impact of a different regime i.e. democracy and military regime with reference to macroeconomic variables and poverty rate. The descriptive statistical analysis was carried out by using graphs and inferential statistical analysis was performed using Pearsons correlation and multiple regression analysis. The results showed that the real GDP and tax revenues have significant negative effects on the poverty rate. The inflation also showed a significant positive effect on the poverty rate, which implied that an increase in inflation hurts the poor more and leads to increased poverty. The unemployment rate showed insignificant positive impact on the poverty rate. On the aspect of influence of different regimes i.e. democracy and military rule, the results showed democracy has a negative impact on the poverty rate, implying that the democratic regimes are more favourable for poverty reduction in Pakistan.
Keywords: gross domestic product; GDP; inflation; unemployment; tax revenues; poverty rate; political regimen; macroeconomic dynamics; Pakistan; democracy; military regimes; poor. (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.inderscience.com/link.php?id=79558 (text/html)
Access to full text is restricted to subscribers.
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:ids:ijecbr:v:12:y:2016:i:2:p:119-135
Access Statistics for this article
More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().