Impact of Village-specific, Household-specific, and Technological Variables on Poverty in Punjab

Rural poverty remains a serious problem in Pakistan, with more than 30 percent of rural population living in absolute poverty. In rural Pakistan there is a big gap between rich and the poor. While the stake of competition for position and status concerns the rich, the struggle for survival in the midst of increasing crises embarrasses the poor. The rural poor—the pauperised class—are week and powerless with inadequate command over resources relative to needs. In fact, the polarisation process which is making the rich richer and poor poorer is a consequence of poverty. Neither the poor nor the outside well wishers have the power to break the vicious deprivation trap. It is consensus that rural social structure is responsible for rural underdevelopment. A number of attempts can be seen in the literature having discussed the different dimensions of the above phenomenon related to developing economies in general and to Pakistan in particular, The present study is the continuity of the above efforts. However, this study discusses the enigma of poverty based on a village study. Within above setting, a village survey has been conducted in the Southern Punjab. The study analyses the determinants of rural poverty in the above village and its relation with productive assets, tools and instruments, gender, rural employment, household size, earner size, education level, etc. The analysis explicitly takes into account such attributes as the village specific, household specific and technological variables.

Impact of Village-specific, Household-specific, and Technological Variables on Poverty in Punjab

Rural poverty remains a serious problem in Pakistan, with more than 30 percent of rural population living in absolute poverty. In rural Pakistan there is a big gap between rich and the poor. While the stake of competition for position and status concerns the rich, the struggle for survival in the midst of increasing crises embarrasses the poor. The rural poor—the pauperised class—are week and powerless with inadequate command over resources relative to needs. In fact, the polarisation process which is making the rich richer and poor poorer is a consequence of poverty. Neither the poor nor the outside well wishers have the power to break the vicious deprivation trap. It is consensus that rural social structure is responsible for rural underdevelopment

Investment, Hysteresis, and Layers of Techniques: A Case Study of Agricultural Manufacturing Machinery in Multan Division

The behaviour of firms is still a little understood matter. Why one firm or industry is investing more than the other or what makes a firm enter or exit from the market, what are the psychological factors that go to make a choice of this kind are questions that have not been answered satisfactorily. Concepts like irreversibility, uncertainty, investment, and the value of waiting are very much there in the literature, e.g., McDonald and Siegel (1985, 1986); Nickell (1974); Schmalensee (1972); Hartman (1972); Henry (1974) and LAM (1989) and others. But the psychology of decision-making on the face of losses has not received much attention in the literature. That the Economic Hysteresis1 and Layers of Techniques2, developed by Professor A. Dixit and Professor P. N. Mathur respectively tackle.

Attitude towards Interest-free Financing among Small Traders and Farmers in Multan

It is frequently asked whether the modern economy can function without interest. This question has acquired some urgency in wake of the recent ruling of Supreme Court banning interest in Pakistan. In this respect every expert has his own opinion. Some pronounced that great harm will result from the banning of interest. Others have the opinion that such pronouncement is based on lack of understanding of the modern economic system, as well as the nature of the Islamic prohibition of interest. However, the banning of the rate of interest has affect on the economic activity, i. e. especially on the small traders and farmers. It is commonly argued that this change in capital market has two important effects on the economy. It increased the capital supply while price reduces, thus improving efficiency. And it makes also possible to produce more with relatively less cost, thus has positive effect on the growth of the economy.

Impact of Exchange rate Volatility on Growth and Economic Performance: A Case Study of Pakistan, 1973-2003

This paper investigates the impact of volatility of exchange rates on the manufactured production of Pakistan’s economy. After a short introduction of the underlying theories and empirical literature, the relationship between these two variables is estimated. In the regression, the conditional variance of the real exchange rate is the measure of uncertainty (GARCH estimation). The results obtained are positive but are insignificant, and do not support the position that excessive volatility or shifting of exchange rate regimes has pronounced effects for manufacturing production. These results are consistent with what we obtain from the impulse responses. It is believed, however, that the thesis adds to the body of evidence, suggesting that exchange rate variability has no significant effect on manufacturing products.

Poverty, Female Labour Force Participation, and Cottage Industry: A Case Study of Cloth Embroidery in Rural Multan

It is a well-known fact that cottage industries can play a significant role in the development of an economy like Pakistan. As it is observed that this industry is not required too much financing, imported and highly sophisticated technology. So the problems like deficit in public finance and balance of payments is not related with the growth and development of these industries. Simultaneously, high degree of female labour force participation in this sector has also been proved in the number of studies. Which seems to be helpful in the process of reduction of poverty especially in the rural areas. The Southern Punjab especially its rural areas are comparatively less prosperous than the other parts of Punjab. A number of female workers can be seen in the rural areas of Southern Punjab. The concentration of these workers is in few traditional areas and is characterised by the low technology and low production levels. These areas are typically those, which require skills that are basically the extension of household skills or which reflect a specific educational and employment experience of women. It has also been observed that women’s income of the rural areas of Southern Punjab are more likely than their male partners to go towards meeting their family’s basic needs. These women spent most of their business income on the households, food, clothing and education of their children rather than reinvesting it in their business.