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

Ali, Safdar and Ahmad, Khalil and Ali, Amjad (2019): Does Decomposition of GDP Growth Matter for the Poor? Empirical Evidence from Pakistan.

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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.

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