“The Three Evils”: Inflation, Poverty and Unemployment’s Shadow on Economic Progress—A Novel Exploration from the Asymmetric Technique

Abstract

The primary goal of this analysis was to determine the impact of inflation, poverty, unemployment, and population growth on economic growth in Pakistan using time series data from 1986 to 2020. The stationarity for the variables was tested through unit root testing, while the asymmetric (NARDL) technique was applied to expose the association amid the variables via short-run and long-run dynamics. The outcomes show that (1) variable inflation and poverty have adversative linkages to economic growth, (2) unemployment has a positive association with economic growth, and (3) variable population growth showed a negative association via short-run and long-run dynamics. Inflation, poverty and unemployment are now emerging issues in the Pakistan. The Pakistani economy has been determined to have a strong and negative link between inflation and economic growth. After a certain point, generalized inflation seems to be harmful to economic growth in the country. New governmental strategies and policies are required to tackle this issue in order to boost economic progress.