August 14, 2025Open Access

Pathways to Alleviate Poverty in Pakistan: The Role of FDI Inflows, Human Capital and Income Inequality

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Poverty reduction is significantly influenced by foreign direct investment, human capital, and income inequality.
High Gini coefficient and inflation show a strong positive effect on poverty, while FDI and secondary school enrollment reduce it.
The ARDL technique was used to analyze data from 1980 to 2020, demonstrating long-term and short-term effects.
The findings suggest that equitable income distribution and targeted policies are essential for effective poverty alleviation.

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Analysis reveals that FDI and human capital significantly mitigate poverty in Pakistan, highlighting important policy implications.

Farhan et al. (2025) studied this question.

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