Poverty Mitigation, Digital Technology, and Foreign Direct Investment: ARDL Based Evidence from Pakistan
DOI:
https://doi.org/10.62843/jssr.v5i4.669Keywords:
Digitalization, Poverty, FDI, PakistanAbstract
This research investigates the effect of digital technology on poverty lessening in Pakistan from 1990 to 2022. The poverty headcount ratio is incorporated as the dependent variable, and the analysis integrates digital technology, GDP per capita, labor force participation, inflation, external debt, and Foreign Direct Investment (FDI) being key explanatory variables. The study uses the Autoregressive Distributed Lag (ARDL) and bounds testing approach(s) to examine long-run and short-run relationships. Long-run estimates disclose that digital technology and GDP per capita significantly decrease poverty. The findings propose that digital technology serve as an operative tool for poverty mitigation in Pakistan when supported by prudent management of debt, comprehensive growth policies, and macroeconomic stability.
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