Foreign Capital Inflows and Income Inequality in Pakistan

Sultan , Farhad; Khan , Usman Ullah; Iram , Fozia

doi:10.12816/0059037

Article Details

Foreign Capital Inflows and Income Inequality in Pakistan

Authors:

Sultan , Farhad | Khan , Usman Ullah | Iram , Fozia

Publisher:

Sohar University

Main Topics:

Economics and Finance

Journal:

Oman Chapter of Arabian Journal of Business and Management Review 2020 Vol.9 Issue 3, pp.124-133

Document Type:

Article

Publication Date:

9/2020

Document Language:

English

Document ID (Org No.):

238803

Frequency:

Monthly

pISSN:

22235833

DOI:

10.12816/0059037

Descriptors:

Keywords:

Abstract:

 This study tries to include all foreign inflows variables and examine their impact on income inequality in Pakistan for the period of 1981 to 2018. ADF test was used to test the stationarity of the data, whereas Johansen co-integration test was employed to establish the cointegrating relation among the variables. Consequently, the findings reveal a long run equilibrium relation of income inequality and the independent variables. Moreover, vector error correction model (VECM) is estimated to find the long run and short run dynamics of the study. The results show that foreign capital inflows containing FDI, aid, debt and inflation have positive and significant effect on income inequality in the long run. While, remittances, GDP and trade openness have a negative and statistically significant impact on income inequality in the long run. In the short run, debt and foreign aid have negative, while inflation has positive and statistically significant effect on income inequality.

Article Details

Foreign Capital Inflows and Income Inequality in Pakistan

Authors:

Sultan , Farhad | Khan , Usman Ullah | Iram , Fozia

Publisher:

Sohar University

Main Topics:

Economics and Finance

Journal:

Oman Chapter of Arabian Journal of Business and Management Review 2020 Vol.9 Issue 3, pp.124-133

Document Type:

Article

Publication Date:

9/2020

Document Language:

English

Document ID (Org No.):

238803

Frequency:

Monthly

pISSN:

22235833

DOI:

10.12816/0059037

Descriptors:

FOREIGN CAPITAL

CAPITAL

CAPITAL INFLOW

INCOME

PAKISTAN

Capital Inflows

Johansen Co-Integration Test

VECM

Income Inequality

Pakistan

Issues

Article Details

Authors: Sultan , Farhad | Khan , Usman Ullah | Iram , Fozia

Publisher: Sohar University

Main Topics: Economics and Finance

Journal: Oman Chapter of Arabian Journal of Business and Management Review 2020 Vol.9 Issue 3, pp.124-133

Document Type: Article

Publication Date: 9/2020

Document Language: English

Document ID (Org No.): 238803

Frequency: Monthly

pISSN: 22235833

DOI: 10.12816/0059037

Descriptors:

Issues

Authors:

Sultan , Farhad | Khan , Usman Ullah | Iram , Fozia

Publisher:

Sohar University

Main Topics:

Economics and Finance

Journal:

Oman Chapter of Arabian Journal of Business and Management Review 2020 Vol.9 Issue 3, pp.124-133

Document Type:

Article

Publication Date:

9/2020

Document Language:

English

Document ID (Org No.):

238803

Frequency:

Monthly

pISSN:

22235833

DOI:

10.12816/0059037