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

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  • Ali, Safdar
  • Ahmad, Khalil
  • Ali, Amjad

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.

Suggested Citation

  • Ali, Safdar & Ahmad, Khalil & Ali, Amjad, 2019. "Does Decomposition of GDP Growth Matter for the Poor? Empirical Evidence from Pakistan," MPRA Paper 95666, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95666
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    References listed on IDEAS

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    More about this item

    Keywords

    Sectoral Growth; Rural Poverty; Urban Poverty; Co-integration;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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