Social protection expenditures, poverty, inequality, and economic growth in Pakistan

Abstract

This paper study the relationship between social protection expenditures, poverty, income inequality and economic growth in a marginalized country like Pakistan by using annual data available from 1983 to 2015. Three econometric time series models have been developed; the first model explored the impact of social protection expenditures on poverty; second model investigated the impact of social protection expenditures on income inequality and a third model shows the impact of poverty, income inequality and social protection expenditures on economic growth. Results of cointegration techniques suggested to increase social protection expenditures reduces poverty and inequality in case of Pakistan. Furthermore, increase the expenditures on social protection programs have positive impact on economy and boost economic growth.