Analysing the Impact of Macroeconomics Variables on Poverty in Pakistan: A Fresh Insight using ARDL to Cointegration Analysis

Abstract

The aim for this examines is to describe the effect of macro-economic aspects affecting reduction in poverty. This analyses approximately the concept that how can get rid of poverty by working on macroeconomic variables. The Data is taken from WDI for the duration of 1998 to 2022 of Pakistan. An econometric model ARDL is used to analyse short- and long-term results. Research has proven that poverty may be reduced with the aid of the selected macroeconomic variables. Furthermore, in line with the study's findings, the Education has great impact on economic by reducing poverty. Economy stability growth plays a vital role in eliminating poverty. Inflation presents insignificant impact in short & long duration as it increases poverty so inflation must be in control. This research reveals that all the determinants of the model are statistically great. Gross capital formation is negatively related to poverty and helps in lowering it while the opposite three determinants are positively associated. This study has a novel contribution to literature in the domain Economy growth and poverty knowledge. It is unique in a way to integrate the knowledge in academics and awareness about poverty elimination in Pakistan among students & scholar. Moreover, the observation recommends that the government overview its guidelines & possibility by lessen poverty using education, to control inflation and enhance GDP to boost economic growth.