Journal Article

National income accounting attributes and economic welfare. Evidence from Pakistan

Younis, Ijaz, Shuang, Yang, Nawaz, Muhammad Kashif, Waris, Muhammad, Chan, Cheng

2024

Overview

Economic welfare is essential in the modern economy since it directly reflects the standard of living, distribution of resources, and general social satisfaction, which influences individual and social well-being. This study aims to explore the relationship between national income accounting different attributes and the economic welfare in Pakistan. However, this study used data from 1950 to 2022, and data was downloaded from the World Bank data portal. Regression analysis is used to investigate the relationship between them and is very effective in measuring the relationship between endogenous and exogenous variables. Moreover, generalized methods of movement (GMM) are used as the robustness of the regression. Our results show that foreign direct investment outflow, Gross domestic product growth rate, GDP per capita, higher Interest, market capitalization, and population growth have a significant negative on the unemployment rate, indicating the rise in these factors leads to a decrease in the employment rate in Pakistan. Trade and savings have a significant positive impact on the unemployment rate, indicating the rise in these factors leads to an increase in the unemployment rate for various reasons. Moreover, all the factors of national income accounting have a significant positive relationship with life expectancy, indicating that an increase in these factors leads to an increase in economic welfare and life expectancy due to better health facilities, many resources, and correct economic policies. However, foreign direct investment, inflation rate, lending interest rate, and population growth have significant positive effects on age dependency, indicating these factors increase the age dependency. Moreover, GDP growth and GDP per capita negatively impact age dependency. Similarly, all the national income accounting factors have a significant negative relationship with legal rights that leads to decreased legal rights. Moreover, due to better health facilities and health planning, there is a negative significant relationship between national income accounting attributes and motility rate among children. Our study advocated the implications for the policymakers and the government to make policies for the welfare and increase the social factors.

• Publisher: Public Library of Science,Public Library of Science (PLoS)
• Subject: Access to education / Accounting / Age / Age differences / Analysis / Attributes / Banking / Banks (Finance) / Biology and Life Sciences / Cost and standard of living / Data / Dependency / Economic aspects / Economic conditions / Economic development / Economic factors / Economic growth / Economic policy / Economic welfare / Economics / Employment / Employment - economics / Employment - statistics & numerical data / Endogenous / Foreign investment / Foreign investments / GDP / Global economy / Gross Domestic Product / Growth rate / Health care facilities / Health facilities / Health planning / Humans / Income / Inflation / Inflation rates / Interest rates / Investments / Legal system / Life expectancy / Life Expectancy - trends / Life span / Medicine and Health Sciences / National income / Natural resources / Pakistan / People and Places / Policy making / Population growth / Population policy / Protectionism / Regression analysis / Rights / Robustness / Satisfaction / Social factors / Social networks / Social satisfaction / Social Sciences / Social Welfare - economics / Social well being / Socioeconomic Factors / Standard of living / Unemployment / Unemployment - statistics & numerical data / Web portals / Well being