Determinants of Rural Poverty in Pakistan: A Micro Study

Using micro survey data obtained from a Punjab village we study a large number of rural-specific and household-specific variables besides landholding, in an attempt to determine their role in raising levels of living of rural masses. We investigated the reasons as to how some of the landless households managed to escape poverty whereas some cultivating households failed to do so. The main factors responsible for this outcome were found to be favourable/unfavourable distribution by size of landholding, household size, educational attainment, dependency ratio, participation rates, female-male ratio, and age of the household head. The landless households escaping poverty, however, remained in a low-income category. Whereas our analysis highlighted the importance of institutional setting for a better distribution of assets and access to resources, at the same time it pointed to the fact that numerous non-farm activities also enable the rural households to generate incomes and thus avoid poverty.

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.

Surmising Consumer Demand System & Structural Changes Using Time Series Data

Consumer demand for food and non-food items in Pakistan has attracted the attention of various researchers. They have employed different parametric approaches, like single equation, double log models, linear expenditure system and extended linear expenditure system. Most of the studies were based on household income and expenditure survey data. Like other household surveys, HIES data do not give information about prices, due to which price elasticities could not estimated. This task could not be accomplished partly because, in order to examine the existence and the nature of structural change and estimation of price elasticities, time series data was required. In this context the present study is a step ahead. In this analysis time series data has been used on meat group from 1950-51 to 2003-2004. We estimated the linear approximation of almost ideal demand system (LA/AIDS). The model is used to estimate the parameters of meat demand equations. Furthermore, the existence and the nature of the structural change is checked by using LA/AIDS. The results from LA/AIDS model show a shift in consumer demand in case of chicken in 1991-92. Price and expenditure elasticities have also been calculated. The estimates of price and income elasticities are also consistent with economic theory.Consumer Demand: Empirical Estimation: LAAIDS: Time Series Data: Pakistan

Determinants of Rural Poverty in Pakistan: A Micro Study

Using micro survey data obtained from a Punjab village we study a large number of rural-specific and household-specific variables besides landholding, in an attempt to determine their role in raising levels of living of rural masses. We investigated the reasons as to how some of the landless households managed to escape poverty whereas some cultivating households failed to do so. The main factors responsible for this outcome were found to be favourable/unfavourable distribution by size of landholding, household size, educational attainment, dependency ratio, participation rates, female-male ratio, and age of the household head. The landless households escaping poverty, however, remained in a low-income category. Whereas our analysis highlighted the importance of institutional setting for a better distribution of assets and access to resources, at the same time it pointed to the fact that numerous non-farm activities also enable the rural households to generate incomes and thus avoid poverty

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 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

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 econom

Fiscal Decentralisation and Economic Growth in Pakistan

Fiscal decentralisation is seen as a means to enhance the economic efficiency of the government and also promote economic growth. Fiscal decentralisation is the empowerment of fiscal responsibilities to the sub-national governments, involving devolution of powers to tax and spend along with arrangements for correcting the imbalances between resources and obligations. The effectiveness of fiscal decentralisation depends upon: (a) appropriate expenditure assignments—with division of functions among different levels of government depending upon their comparative advantage (called the principle of subsidiarity); (b) appropriate tax or revenue assignments; and (c) the efficient design of a system of transfers and its proper implementation [Kardar (2006)]