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Does Decomposition of GDP Growth Matter for the Poor? Empirical Evidence from Pakistan

Safdar Ali, Khalil Ahmad and Amjad Ali ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines how the economic growth of different sectors affects poverty in Pakistan uses the time series data over the period 1973-2010. The ARDL co-integration approach has been applied to investigate the impact of sectoral growth on aggregate as well as disaggregated poverty in the long run and short run. The results indicate that industrial growth reduces total, rural and urban poverty significantly while the performance of services sector affects the composition of poverty insignificantly. The agricultural sector growth has a negative impact on aggregate poverty while it has an insignificant impact on disaggregated poverty.

Keywords: Sectoral Growth; Rural Poverty; Urban Poverty; Co-integration (search for similar items in EconPapers)
JEL-codes: O41 P46 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-hme
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