Relationship between Development and Poverty in Pakistan

Abstract

Aim of the Study: This study investigates the relationship between Income level and poverty rate in Pakistan.

Methodology: The analysis based on regression estimates by using the time series data from 1960 to 2019. A single equation model has been developed and regression analysis is done in linear from using ordinary least square (OLS). Pre-estimation test (Test of stationary) is used before regression, and Post- estimation test (Test of Phillips-Perron test) is used after regression. Researchers used per capita income as dependent variable and check the role of per capita income in economy.

Findings: The outcome demonstrates that the poverty rate and per capita income are negatively correlated. The outcome provides proof that Pakistan's poverty rate is significantly impacted by per capita income.

Conclusion: The study gave important conclusion that income level and poverty has negative relationship. It means that for increase the income level there is a need that the poverty rate should decrease.