Economic Growth and Income Inequality Nexus: An Empirical Analysis for Pakistan

Muhammad Majeed

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the impact of income inequality on economic growth in Pakistan using annual time series data from 1975 to 2013. The empirical analysis for the effect of income inequality on economic growth is based on the ARDL approach to cointegration. The empirical findings show that inequality exerts significantly positive influence on annual economic growth of Pakistan. It implies that annual growth is not driven by the poor which is also confirmed by the negative influence of poverty on growth. Though inequality exerts positive influence on growth but such type of growth cannot be sustained as the poor are not part of the growth process.

Keywords: economic growth; income inequality; poverty; Pakistan (search for similar items in EconPapers)
JEL-codes: D31 O40 (search for similar items in EconPapers)
Date: 2016-06-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in Kashmir Economic Review 1.25(2016): pp. 1-12

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/89705/1/MPRA_paper_89705.pdf original version (application/pdf)

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:pra:mprapa:89705

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().