The Impact Of Trade Liberalization, Population Growth And Income Inequality On Poverty: A Case Study Of Pakistan

  • Najid Ahmad Bahauddin Zakariya University, Multan, Pakistan
  • Muhammad Luqman Bahauddin Zakariya University, Multan, Pakistan
  • Muhammad Farhat Hayat Bahauddin Zakariya University, Multan, Pakistan
  • Arslan Ahmad Economics Department, University of the Punjab, Lahore, Pakistan
Keywords: Poverty, Income Inequality, Trade Liberalization, Population Growth, HDI


This paper is an attempt to check the impact of income inequality, population growth and trade liberalization on poverty in Pakistan. Human Development Index (HDI) is used as dependent variable and Gini coefficient, population growth rate, political stability (dummy variable) trade liberalization and lagged HDI as independent variables. The results suggest that income inequality and population growth has positive relation with poverty while trade liberalization has negative relation with poverty. If Pakistan wants to reduce poverty then there is a need to control population growth and income inequality gap. On the other hand there is a dire need for globalization and trade liberalization.


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