ASSESSING THE CONTRIBUTION OF PHYSICAL AND FINANCIAL INFRASTRUCTURE TO INCLUSIVE DEVELOPMENT IN PAKISTAN

Abstract

The growing income inequalities along with lack of access to education and health in developing economies have resulted in economic and social restlessness which eventually shifted the attention of policymakers from growth objectives to inclusive economic development. This study constructs an index for inclusive development using UNDP’s (2011) human development index approach. Furthermore, this study analyzes the role of the financial and physical infrastructure to fight against disparities in income distribution and providing access to education and health thereby enabling the economy to move along the road that leads to inclusive development. The findings of this paper imply that physical infrastructure and financial development positively affect inclusive development. Thus, there is a need to promote investment in financial services and physical infrastructure to foster inclusive economic development. Keywords: Physical Infrastructure, Financial Issue, Inclusive development, Pakistan.