Manufacturing Sector Employment and Multidimensional Poverty in Pakistan: A Case Study of Punjab Province

1
Sharafat Ali
Sharafat Ali M. Phil. PhD
2
Muhammad Asghar
Muhammad Asghar
3
Raheel Abbas Kalroo
Raheel Abbas Kalroo
4
Sadia Anjum
Sadia Anjum
5
Muhammad Ayaz
Muhammad Ayaz
1 Allama Iqbal Open University Islamabad

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Economic growth coupled with equitable distribution of income and low poverty levels are the prime objective of economists and policy makers. Industrial sector has been the ‘engine of growth’ in the process of growth and development of the developed economies of today. Pakistan economy is the sixth largest economy of the world. About 48 percent of population, in Pakistan, is living under multidimensional poverty. The industrial sector of the Pakistan economy contributes about one-fifth of shares in the GDP. It employs a large share of labor force. So these facts provided the aspirations to explore the impact of manufacturing sector employment on multidimensional poverty in Pakistan. Cross-sectional data of 34 districts of Punjab province is used for the analysis. Multidimensional poverty head count index is regressed on manufacturing sector employment, healthcare, and education service. The standard OLS method is used to estimate the poverty equation. The study confirms the poverty alleviating impact of manufacturing sector employment and human capital (healthcare and education). The estimated model qualifies the diagnostic, specification error and stability tests. The study also suggests some policy recommendations for the improvement of the human capital and manufacturing sector.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Sharafat Ali. 2014. \u201cManufacturing Sector Employment and Multidimensional Poverty in Pakistan: A Case Study of Punjab Province\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 14 (GJHSS Volume 14 Issue E2): .

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GJHSS Volume 14 Issue E2
Pg. 24- 31
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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April 17, 2014

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Economic growth coupled with equitable distribution of income and low poverty levels are the prime objective of economists and policy makers. Industrial sector has been the ‘engine of growth’ in the process of growth and development of the developed economies of today. Pakistan economy is the sixth largest economy of the world. About 48 percent of population, in Pakistan, is living under multidimensional poverty. The industrial sector of the Pakistan economy contributes about one-fifth of shares in the GDP. It employs a large share of labor force. So these facts provided the aspirations to explore the impact of manufacturing sector employment on multidimensional poverty in Pakistan. Cross-sectional data of 34 districts of Punjab province is used for the analysis. Multidimensional poverty head count index is regressed on manufacturing sector employment, healthcare, and education service. The standard OLS method is used to estimate the poverty equation. The study confirms the poverty alleviating impact of manufacturing sector employment and human capital (healthcare and education). The estimated model qualifies the diagnostic, specification error and stability tests. The study also suggests some policy recommendations for the improvement of the human capital and manufacturing sector.

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Manufacturing Sector Employment and Multidimensional Poverty in Pakistan: A Case Study of Punjab Province

Sharafat Ali
Sharafat Ali Allama Iqbal Open University Islamabad
Muhammad Asghar
Muhammad Asghar
Raheel Abbas Kalroo
Raheel Abbas Kalroo
Sadia Anjum
Sadia Anjum
Muhammad Ayaz
Muhammad Ayaz

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