Examining Linkages between Poverty Alleviation and Macroeconomic Performance in Pakistan

Muhammad Murtaza, Muhammad Ayyoub, Aisha Riaz and Riaz Ahmed
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Muhammad Murtaza: MPhil Student, Department of Economics, University of Sahiwal, Pakistan
Muhammad Ayyoub: Assistant Professor, Department of Economics, University of Sahiwal, Pakistan
Aisha Riaz: Lecturer, Department of Management Sciences, University of Okara, Pakistan
Riaz Ahmed: Assistant Professor, Department of Management Sciences, University of Turbat, Pakistan

Journal of Policy Research (JPR), 2023, vol. 9, issue 2, 665-678

Abstract: This study undertakes an empirical exploration of the intricate interplay between macroeconomic variables and poverty in Pakistan. By employing an autoregressive distributive lag model, we scrutinize both short- and long-term relationships between these critical factors over a span of 41 years: 1980-2021. Our findings elucidate that in the short-run, GDP, inflation, and education exhibit negative impacts on poverty, while in the long-run, GDP, inflation, interest rates, exchange rates, and education maintain negative associations with poverty. Moreover, imports, exports, and the balance of payments show no significant short-term impact on poverty, but in the long-run, they establish a positive relationship with poverty. These results underscore the imperative of enhancing the education system, particularly in technical education, as a means to combat poverty. Furthermore, improving the ease of doing business to attract foreign investment emerges as a crucial avenue for stimulating economic activity, reducing unemployment, and alleviating poverty.

Keywords: Education; GDP; Inflation; Macroeconomic Performance; Poverty; Unemploymen (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:jprjor:v:9:y:2023:i:2:p:665-678

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