Abstract:
Poverty reduction is one of the major global challenges. Hence, the first goal among the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) are to eradicate poverty. Governance in political and economic institutions is directly and strongly correlated with all strategies and measures to reduce poverty. However, this idea is not empirically tested, especially in the case of the subcontinent. Therefore, firstly, this paper presents a statistical analysis of this phenomenon in the case of the subcontinent and then an econometric analysis of the link between governance and poverty reduction in the case of Pakistan. After verifying the stationarity of the variables, the cointegration between the variables, the stability of the econometric model, the ARDL technique is used for the estimation. What follows is the conclusion that this governance is directly influencing programs to reduce poverty. Furthermore, this document provides pragmatic recommendations for poverty reduction.
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