This purpose of this research is to explore the relationship between industrial development and poverty reduction in case of Pakistan. The data is taken from 1975 to 2010. It takes the hypothesis that industrial development will decrease poverty through increased employment and rise in the per capita income. All the variables used in the model are stationary at 1st difference. I have employed ARDL approach to Co-integration to find relationship between industrial development and poverty reduction. The approach and findings of the study are compared with that of regional and East Asian countries, which have developed through industrialization. The t-values for LINDG is highest among the independent variables, which means growth in industry can reduce the poverty to greater extent. The population growth of Pakistan is quite high, by increasing the literacy rate; we can make the labor skilled, increasing human capital, that will lead to more jobs and earning opportunities, reducing poverty.
Table of Contents
1. Introduction
1.1-Organization of study
1.2-Objectives of the Study
1.3-Research question
2. Literature Review
3. Overview
3.1-World Industrial Overview
3.2-Industrial Overview of Pakistan
3.2.1-The decade of 1950s
3.2.2-The decade of 1960s
3.2.3-The years of 1970 and 1971
3.2.4-From 1972 to 1977
3.2.5-From 1978 to 1988
3.2.6-From 1988 to 1990
3.2.7-From 1991 to 2000
3.2.8-From 2001 to 2010
3.3-Poverty Overview
4. Methodology& Hypothesis
4.1-Explanation of Variables
4.2-Lin Log Model
4.3-Stationary or unit root test
4.4-The Results of ARDL approach
4.5-Explanation
4.6-Interpretation of Variables
4.7-Results of Error Correction Model
4.7.1-Interpretation of Error Term
4.8-Interpretation of R2
4.9-Interpretation of F-statistic
4.10-Stability of growth model
5. Policy Recommendations & Conclusions
5.1-Conclusions
5.2-Policy Implications
Objectives and Scope
This study investigates the relationship between industrial development and poverty reduction within the context of Pakistan, aiming to determine whether industrial growth can effectively create job opportunities, increase per capita income, and thereby reduce poverty levels. The research employs an empirical analysis of data spanning from 1975 to 2010.
- Analysis of the impact of industrial growth on poverty levels in Pakistan.
- Evaluation of macroeconomic indicators including inflation and unemployment.
- Comparative analysis of industrial development and poverty trends in regional countries.
- Formulation of policy recommendations to foster sustainable industrial growth and poverty alleviation.
Excerpt from the book
3.2.1-The decade of 1950s.
The end of Korean boom in the early 50s brought many fortunes for Pakistan. It happened at that time when there were discouraging exchange rates, imports were increasing and there was scarcity of resources. When Korean boom ended there was a great increase in opportunities of lager profits in large scale manufacturing for the domestic market, with it the domestic market was given many incentives which encouraged the industry to grow. At the macroeconomic level, stability and investment grew sharply. The decade was a sudden fortune for Pakistan which differentiated it from other countries of the region. Unfortunately, it happened only in West Pakistan with only 2% annual growth rate in the East Pakistan during 1950s. The transfer of resources from the agriculture sector of East Pakistan to the industrial sector of West Pakistan accumulated a huge capital for the industrial sector.
Summary of Chapters
Introduction: Provides the background and research objectives regarding the link between industrialization and poverty in Pakistan.
Literature Review: Summarizes previous empirical studies and academic discussions regarding industrial development, employment generation, and poverty reduction.
Overview: Explores global and national historical trends in industrial production, poverty indicators, and their development over several decades.
Methodology& Hypothesis: Outlines the econometric framework, including the Lin-Log model and ARDL approach, used to estimate the relationship between industrial growth and poverty.
Policy Recommendations & Conclusions: Presents the final findings of the study and proposes specific industrial policy measures to stimulate economic growth and reduce poverty.
Keywords
Industrial development, Poverty reduction, Pakistan, Economic growth, Unemployment, Inflation, Head Count Ratio, ARDL approach, Manufacturing sector, Human capital, Sustainable development, Financial development, Macroeconomic policy.
Frequently Asked Questions
What is the primary focus of this research?
This research primarily focuses on the relationship between industrial development and poverty reduction in Pakistan, specifically analyzing how industrial growth affects employment and income levels.
What are the central themes of the work?
The central themes include industrialization as a driver of economic growth, the dynamics of unemployment, the role of inflation in poverty, and the evaluation of effective industrial policies.
What is the core research question?
The study seeks to answer whether industrial development in Pakistan can generate sufficient job opportunities and increase per capita income to successfully reduce poverty.
What research methodology is employed?
The study uses an econometric methodology, specifically the Autoregressive Distributed Lag (ARDL) model, to test the long-run and short-run relationship between variables using time-series data from 1975 to 2010.
What is covered in the main body of the text?
The main body covers a historical overview of Pakistan's industrial sectors, a review of global literature on poverty, a detailed statistical analysis of the data using an ARDL framework, and a discussion of policy implications.
Which keywords characterize this work?
Key terms include industrial development, poverty reduction, Pakistan, economic growth, ARDL model, unemployment, and macroeconomic policy.
What does the study suggest regarding inflation in Pakistan?
The study finds that inflation is a significant variable and that policies aimed at reducing inflation are crucial for decreasing poverty levels in the long-run.
Why is the 1991-2000 period described as a "lost era"?
It is characterized as a "lost era" due to high political rivalry, abrupt changes in government, economic instability, and international sanctions following atomic tests, all of which adversely affected the industrial sector.
What role does the "Error Correction Model" play in this study?
The Error Correction Model (ECM) is used to show the speed of adjustment towards long-run equilibrium, indicating how quickly the system corrects disequilibrium between industrial growth and poverty variables.
What is the author's conclusion on the role of government?
The author concludes that the government should act as a facilitator rather than an intervener, creating a supportive environment for the private sector to drive industrialization.
- Arbeit zitieren
- Muhammad Zeeshan (Autor:in), 2013, Industrial Development and Poverty Reduction. A Case Study of Pakistan, München, GRIN Verlag, https://www.grin.com/document/476731
