Fiscal implications for Rural-Urban Poverty of Pakistan
Keywords:
Fiscal policy, Rural-urban Poverty, Economic Growth,Abstract
In this study, we try to investigate the fiscal policy empirically inquiry for overall and rural- urban poverty for Pakistan. Fiscal policy has so many economic and social implications for every country of the world, including stable economic development, employment opportunities, and poverty evaluation among others. Generally, supply-side and demand-side fiscal policy tools are utilized to achieve economic and social improvement. The time-series data is employed from1980 to 2019. To test for both short-run and long-run relationships between fiscal variables and poverty, the Autoregressive distributed lag model (ARDL) is adopted. Pakistan is an important case study because of the emergence of dual rural agricultural traditional and urban modern industrial sectors. The empirical investigation shows that government expenditure and per capita growth have a negative and significant impact on an aggregate and rural-urban poverty. Inflation and public tax have a positive impact on all tiers of poverty.
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