IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v35y2008i4p269-282.html
   My bibliography  Save this article

Challenging trickle‐down approach

Author

Listed:
  • Muhammad Azeem Qureshi

Abstract

Purpose - Successive governments in Pakistan have been pursuing pro‐growth trickle‐down approach with the proclaimed intent that benefits of growth will ultimately reach all. The purpose of this paper is to challenge this intent with a systemic model and suggest alternative policy. Design/methodology/approach - This paper develops a model of system structure of public expenditure and human development (HD) using System Dynamics method. The theoretical and empirical literature provides the conceptual framework to model the paradoxical case of Pakistan. Findings - The simulation results show that high economic growth may not result into better HD indicators. This is in conflict with the trickle‐down approach of economic growth which advocates the economically disadvantaged segments of the society ultimately reap the long‐term benefits of economic growth. On the contrary, high spending on education and health will yield better results even if the economy grows at a relatively lower rate. This paper suggests that the demographic and human development of Pakistan has strong linkages with the public expenditure on HD and weak linkages with the economic growth. Practical implications - The paper suggests a threshold of 3 percent of sustained economic growth rate as a pre‐requisite to plan for HD in Pakistan. With that in place the government should adhere to high public spending on education and health for HD which is not only an end in itself but is also a must for sustainable development. Research limitations/implications - This paper assumes exogenous gross domestic product (GDP). The future research requires relaxing of exogenous assumption for GDP to make it endogenous to reflect two‐way feedback relationship of HD and GDP in the long run. Moreover, it will be useful to model the role of HD to promote equitable income distribution in this context where asymmetric income distribution is especially pronounced and may have causal links with HD. Originality/value - A detailed and robust population cohorts' structure that provides demographic development over time is a unique feature of the model developed for this paper. This is a conscious effort to reflect the causal links of economic growth and HD that involve nonlinearity and delays.

Suggested Citation

  • Muhammad Azeem Qureshi, 2008. "Challenging trickle‐down approach," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(4), pages 269-282, March.
    • Handle: RePEc:eme:ijsepp:v:35:y:2008:i:4:p:269-282
    DOI: 10.1108/03068290810854547
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068290810854547/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068290810854547/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/03068290810854547?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 699-749, September.
    2. Qazi Masood AHMED, 1998. "STRUCTURE OF PUBLIC FINANCES: Historical Perspectives and Future Prospects," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 14, pages 89-105.
    3. Chang, Koyin & Ying, Yung-Hsiang, 2006. "Economic growth, human capital investment, and health expenditure : a study of OECD countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 47(1), pages 1-16, June.
    4. Mohammed Sabihuddin Butt*, 1984. "Education And Farm Productivity In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 3(1), pages 65-82.
    5. Hafiz A. PASHA*, 1995. "POLITICAL ECONOMY OF TAX REFORMS: The Pakistan Experience," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 11, pages 129-154.
    6. Zeba A. Sathar, 1992. "Child Survival and Changing Fertility Patterns in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 699-713.
    7. Azra Aziz, 1994. "Proximate Determinants of Fertility in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 727-742.
    8. Streeten, Paul, 1994. "Human Development: Means and Ends," American Economic Review, American Economic Association, vol. 84(2), pages 232-237, May.
    9. Nancy Birdsall & David Ross & Richard Sabot, 1993. "Underinvestment in Education: How Much Growth has Pakistan Foregone?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 453-499.
    10. Hafiz A. Pasha & M. Asif Iqbal*, 1994. "Taxation Reforms In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 10, pages 47-75.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. Sardi & E. Sorano, 2021. "Dynamic Performance Management: An Approach for Managing the Common Goods," Papers 2102.04090, arXiv.org.
    2. Matteo Pedercini & Santiago Movilla Blanco & Birgit Kopainsky, 2011. "Application of the Malaria Management Model to the Analysis of Costs and Benefits of DDT versus Non-DDT Malaria Control," PLOS ONE, Public Library of Science, vol. 6(11), pages 1-12, November.
    3. Zhiping Song & Peishan Tong, 2022. "The Impact of Social Security Expenditure on Human Common Development: Evidence from China’s Provincial Panel Data," Sustainability, MDPI, vol. 14(17), pages 1-12, September.
    4. Pedercini, Matteo & Barney, Gerald O., 2010. "Dynamic analysis of interventions designed to achieve millennium development goals (MDG): The case of Ghana," Socio-Economic Planning Sciences, Elsevier, vol. 44(2), pages 89-99, June.
    5. Muhammad Azeem Qureshi & Ayaz Muhammad, 2010. "Is inclusive government more humane? Perspective on food availability in Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(8), pages 562-573, July.
    6. Muhammad Usman & Hafiz Waqas Kamran & Hassan Khalid, 2012. "Impact of Exports on Economic Growth- A Case of Luxemburg," Information Management and Business Review, AMH International, vol. 4(1), pages 1-7.
    7. Alberto Sardi & Enrico Sorano, 2019. "Dynamic Performance Management: An Approach for Managing the Common Goods," Sustainability, MDPI, vol. 11(22), pages 1-22, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Azeem Qureshi, 2009. "Human development, public expenditure and economic growth: a system dynamics approach," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(1/2), pages 93-104, January.
    2. Sabatini, Fabio, 2006. "Social Capital and Labour Productivity in Italy," Knowledge, Technology, Human Capital Working Papers 12090, Fondazione Eni Enrico Mattei (FEEM).
    3. Meghisan-Toma Georgeta-Madalina & Toma Dorin, 2019. "Health Determinants and Unmet Needs for Health Care- towards e-Health Systems," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 1045-1057, May.
    4. Fakhari A. Siddiqui, 1998. "Population Growth and Development Prospects for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 557-574.
    5. Maria-Dolores, Ramon & Martínez Carrion, José Miguel, 2012. "The comovement between height and some economic development indicators in Spain," UMUFAE Economics Working Papers 26464, DIGITUM. Universidad de Murcia.
    6. Elgin, Ceyhun, 2012. "A Theory Of Economic Development With Endogenous Fertility," Macroeconomic Dynamics, Cambridge University Press, vol. 16(5), pages 686-705, November.
    7. Madsen, Jakob B., 2016. "Barriers to Prosperity: Parasitic and Infectious Diseases, IQ, and Economic Development," World Development, Elsevier, vol. 78(C), pages 172-187.
    8. Akram, Naeem, 2009. "Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan," MPRA Paper 15454, University Library of Munich, Germany.
    9. Howe, Paul, 2019. "The triple nexus: A potential approach to supporting the achievement of the Sustainable Development Goals?," World Development, Elsevier, vol. 124(C), pages 1-1.
    10. Fraser Summerfield & Livio Di Matteo, 2021. "Influenza Pandemics and Macroeconomic Fluctuations in Recent Economic History," Working Papers 210002, Canadian Centre for Health Economics.
    11. Singh, Renu & Sarkar, Sudipa, 2015. "Children's experience of multidimensional deprivation: Relationship with household monetary poverty," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 43-56.
    12. Gong, Liutang & Li, Hongyi & Wang, Dihai, 2012. "Health investment, physical capital accumulation, and economic growth," China Economic Review, Elsevier, vol. 23(4), pages 1104-1119.
    13. Goletsis, Y. & Chletsos, M., 2011. "Measurement of development and regional disparities in Greek periphery: A multivariate approach," Socio-Economic Planning Sciences, Elsevier, vol. 45(4), pages 174-183, December.
    14. Gustav RANIS & Frances STEWART, 2001. "Growth And Human Development: Comparative Latin American Experience," The Developing Economies, Institute of Developing Economies, vol. 39(4), pages 333-365, December.
    15. Muhammad Ashfaq Ahmed, 2020. "Pakistan: Withholdingisation of the Economic System—A Source of Revenue, Civil Strife, or Dutch Disease?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 469-516.
    16. Chowdhury, Rosen & Cook, Steve & Watson, Duncan, 2023. "Reconsidering the relationship between health and income in the UK," Social Science & Medicine, Elsevier, vol. 332(C).
    17. Tomer, John F., 1996. "Good habits and bad habits: A new age socio-economic model of preference formation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(6), pages 619-638.
    18. Jordá , Vanesa & Trueba, Carmen & Sarabia, Jose Maria, 2014. "Análisis multidimensional de la desigualdad en el marco del desarrollo humano/Multidimensional Analysis of Inequality under the Human Development Framework," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 765-788, Mayo.
    19. Maria Ana Lugo & Koen Decancq, 2009. "Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index," Economics Series Working Papers 459, University of Oxford, Department of Economics.
    20. Deniz Karaoğlan & Dürdane Şirin Saraçoğlu, 2018. "Socio-Economic Factors Affecting Early Childhood Health: the Case of Turkey," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(3), pages 1051-1075, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:35:y:2008:i:4:p:269-282. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.