Income Disparity In Pakistan

The income data also shows the motivation of people to.

Income disparity in pakistan. The dynamic scenario of inequality over the period is a well known fact across the developing countries cheema and sial 2012 table 2 expose the uni dimensional inequality estimates of pakistan. However since the variance is not independent of unit of measure ment a proportional increase in income across the board will be shown by variance as an increase in income inequality while it has remained constant. The shares of various quintiles in income also show similar trends table2. Rural urban income inequality under financial development and trade openness in pakistan.

The econometric evidence the pakistan development review pakistan institute of development economics vol. Our findings are summarized. Shift towards the studies relating to income inequality occurred in 1990s thus conducting a study under a time period from 1990 to 2009 will be quite relevant under current situation. In pakistan too winds of change in economic discourse are blowing with unmatched scope and unparalleled intensity.

We provide new estimates on pre tax income inequality. To our knowledge this is the first time an income distribution for pakistan has been generated using tax survey and national accounts since haq 1964. Hopefully it will not just have bearings on the ongoing public debate but will also attract. Income disparity is a widespread phenomenon in not only the developing economies but the developed world as well.

Income inequalities in rural areas on the other hand declined from 0 3543 to 0 3122 over the 1963 70 period. Area income distribution the causes of inequality are due to small holdings by the majority of the population and larger owner operated farms. Income inequality in pakistan 367 variance attaches the highest weight to transfers taking place at the extreme income ranges. The results show that income inequality is positively and significantly related in both long run and short run with economic growth in pakistan.

In time series data which indicates that increasing income inequality is likely to spur higher levels of gdp for example shahbaz 2010 employed a time series data on pakistan for the period 1971 2005 using ardl bound test approach to determine the relationship between income inequality and economic growth in pakistan. In the urban areas gini coefficient increased sharply from 0 3698 to 0 4068 over 1963 67 but declined to 0 3694 by 1969 70. Poor country offers yet another theoretical contribution to literature being produced on the subject of income inequality.