Impact of Unemployment and Governance on Poverty in Pakistan: A Fresh Insight from Non-linear ARDL Co-integration Approach

Muhammad Meo (), Bezon Kumar, Sumayya Chughtai, Vina Javed Khan, Muhammad Khyzer Bin Dost and Qasim Ali Nisar

Global Business Review, 2023, vol. 24, issue 5, 1007-1024

Abstract: This article aims to give a fresh insight into the non-linear relationship between unemployment, governance, and poverty in Pakistan. For the purpose, the study utilizes data from 1984 to 2016 by employing a nonlinear ARDL co-integration approach. The findings provide an insight that poverty responds asymmetrically due to positive or negative shocks in unemployment and governance. Moreover, the results suggest that applying linear models on poverty modelling may mislead the inference. The findings of the study imply that the policymakers and academicians must consider nonlinear behaviour of poverty for better policymaking.

Keywords: Poverty in Pakistan; nonlinear co-integration; hidden co-integration; nonlinear ARDL (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:24:y:2023:i:5:p:1007-1024

DOI: 10.1177/0972150920920440

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