This article attempts an assessment of the legitimacy of the Growth–Inequality–Poverty (GIP) hypothesis in the rural Pakistan using a recent technique, that is, the bounds testing approach. Based on this model, income distribution has stimulated positive adjustment to rural poverty, whereas economic growth and the steady period are found to influence rural poverty negatively. Additionally, a co-integrated relationship between poverty, in-equality and growth was noticed in both the long and short runs. Further analysis showed that rural poverty Granger-caused economic growth in the period of study. Thus, this study provides substantiation to support the GIP hypothesis in the Pakistan economy.
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