Financial Development and Entrepreneurship: Pathways to Economic Growth and Poverty Reduction in Pakistan
DOI:
https://doi.org/10.55737/rl.2024.31131Keywords:
Financial Development, Poverty, Entrepreneurship, ARDL, PakistanAbstract
Financial development by promoting entrepreneurial activities plays a vital role in efficiently minimizing poverty. Among others, a dominant factor that defines underdeveloped economies is poverty, as in the case of Pakistan. This raises questions about what causes poverty to increase and how entrepreneurial activities can help reduce poverty and increase economic growth. This research uses the time series data from 1990 to 2020 that spans over 31 years. Methodological techniques used are ARDL and unit root estimations. Findings of study illustrated that in the long run financial development and entrepreneurship both have negative and significant impact on the dependent variable poverty but in the short run financial development through entrepreneurship have positive and significantly impact poverty and economic growth. To tackle the poverty in this way there is needed such schemes and facilities which reached the poor and interact them and give them opportunities by facilitating. These strategies upgraded the economy gradually and accelerated the economic growth.
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