Does Inflation affect Poverty in South Asia? Panel ARDL and NARDL Analysis from 2001-2021

Abstract

Poverty is a global challenge that encompasses not only economic hardship but also limited access to basic necessities and opportunities for a better life. The study empirically investigates the impact of inflation on poverty in five Asian countries over a period 2001 to 2021 by using Panel ARDL and panel NARDL model, including various statistical techniques, such a panel unit root test and Pedroni cointegration tests. The analysis revealed, strong association among the variables. The other variables of the study include political instability, corruption, and GDP per capita. Findings of the study shown the significant role of effective governance, economic stability, and targeted policies in alleviating the negative impacts of inflation on well-being. The study suggests that focused on inflation in order to mitigate poverty and improve living standard of the masses through a comprehensive approach.