Foreign Inflows and Poverty in Pakistan: A Quantitative Approach
DOI:
https://doi.org/10.26710/reads.v5i1.291Keywords:
Foreign Inflows; Poverty; Johansen Juselius; Granger CausalityAbstract
Foreign Inflows (FI) acquire immense importance for the open economy. Empirical as well as theoretical findings highlight that FI intensely affect the economic state of the host country. Important issue in this respect is to examine the impact(s) of FI on poverty. The study was based on data from 1972 to 2017. It is concluded a long term relationship between poverty and FI. At large, FI do exhibit having opposite relationship with poverty. Moreover, poverty being long run macroeconomic problem does have short run causality with some of FI. Granger causality is also confirmed on some of FI and poverty. Policy recommendation is the appropriate capital allocation for the efficient restoration of the results of FI.
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