Impact of Inflation, Unemployment and Poverty on Economic Growth: A Case Study of Pakistan

Abstract

The central intention of this paper is to examine the effect of Poverty, Inflation and Unemployment on growth of economy of Pakistan. The paper used annual time series data from 1990 - 2020.The study applied ADF Test to check data stationary. The study also applied (OLS) Ordinary Least Square method to estimate the association between dependent and independent variables. The result of OLS method shows positiveimpactofUnemployment and Government Expenditure, and negative impact of poverty and inflation on economic growth. The study suggests that expansionary fiscal policy can be used by government to stimulate the economy during a recession.Thestudy suggests that, labor intensive products should be produce as against capital intensive. This will create employment level, because Pakistan is labor abundance country. This will lead to reduce poverty and increase growth of economy.