Exploring the Influence of Urbanization, Trade, Human Capital, FDI and Money on Poverty in case of Selected Developing Countries

Abstract

This study explores the influence of Urbanization, Trade, Human Capital, FDI, Money on Poverty of developing countries. To capture this effect, panel data of 20 developing countries has been collected through World Development Indicators (WDI) from 2006 to 2022. For the purpose of analysis, Im, Pesaran and Shin W test – unit root test has been applied to check the stationary and to choose the appropriate technique i.e. Panel ARDL technique. The unit root test observes the mixed order of integration about the selected variables. Moreover, the results of ARDL conclude that poverty in selected developing countries is reduced by Trade openness, Foreign Direct Investment, Households Consumption Expenditure, Domestic Investment and Human Capital Index. On the other side, poverty is increased by Urbanization and Money supply in the longrun. Convergence from shortrun to longrun has also been found which is evident from cointegrating term.