DETERMINANTS OF POVERTY IN PAKISTAN: EMPIRICAL EVIDENCE FROM PAKISTAN

  • Khurshed Iqbal PhD Scholar in Qurtuba University of Science and Technology, Peshawar
  • Habib Ullah MS Sholar Iqra National University
  • Dr.Gohar Saeed Director at Rural Academy Peshawar
  • Dr.Shahid Jan Kakakhel Associate Professor Islamia College University Peshawar
  • Hamid Iqbal BS Scholar Janzeeb College Swat

Abstract

This study is conducted to scrutinize the relationship among Poverty, Inflation, Exchange Rate, Corruption, GDP Growth, Budget Deficit and Government Expenditure. In this research, all variables are taken in percentage, due to this the problem of Spurious results and non-stationary data can be avoided. In the results of OLS, it is found that the R-squared, known as the coefficient of determination, showed a value of 84.65% which means that 84.65% changes in the dependent variables are caused by the independent variables that we have used. The rest of 15.35% changes are made by those variables which are not taken in this study. Through OLS, the overall significance of the estimated model and the individual significance of the variables is judged. For overall significance, the probability value of F-Statistic is checked which gave the value of 0.0000. Through this value, it is interpreted that the overall model is highly significant. The OLS results suggested that Exchange Rate, Corruption and Government Expenditure has a significant association with the Poverty in Pakistan. While Inflation Rate, GDP Growth and Budget Deficit has no significant association with the Poverty.

Published
2016-06-01