The determinants of inclusive growth in Pakistan: An Empirical Analysis

Abstract

This study aims to answer the question that “urban population has a detrimental impact on inclusive growth?” (GINI

coefficient is used as a proxy to measure inequality). For this purpose, Autoregressive Distributed Lag model (ARDL)

is used to observe the cointegration among all variables of the model. The vector error correction technique has used

for short run dynamics. The empirical result confirms the presence of cointegration among the urban population and

GINI coefficient of the model. These results reveal that urban population has a deep-rooted impact on the inclusive

growth of the economy. Hence, if Pakistan desired to achieve inclusive growth for the economy, then Pakistan has to

make urban population strong and productive.