Examining the Poverty Human Capital and Economic Development Nexus in Pakistan: Evidence from Southern Punjab

  • Salyha Zulfiqar Ali Shah Assistant Professor, School of Economics, Bahauddin Zakariya University Multan, Pakistan
  • Imran Sharif Chaudhry Director, School of Economics, Bahauddin Zakariya University Multan, Pakistan
  • Fatima Farooq Associate Professor, School of Economics, Bahauddin Zakariya University Multan, Pakistan
Keywords: Human Capital, Economic Development, Household Poverty, Per capita income

Abstract

Purpose: Different socioeconomic and demographic characteristics of households have been examined over time, across the world. Developing countries are struggling and striving to achieve the path of economic development.

Methodology: The present study has based on primary data, collected through a household survey during the year 2019. Human capital constitutes education, health, skills and on-the-job training are the most significantly related to the prosperity of the households.

Findings: The results of the study conclude human capital is the most significant and influential factor that would play a vital role in promoting the prosperity and development of the Southern Punjab, Pakistan.

Implications: Government should develop various projects to promote education in Pakistan. Vocational training schools would help to enhance the skills of the households.

Downloads

Download data is not yet available.

Article Analytics Summary

References

Abdelhak, S., Sulaiman, J., & Mohd, S. (2012). The Role of Assets in The Enhancement of Households' Income: A Study of Poverty Alleviation Among Rural Communities of Kelantan and Terengganu. Asian Social Science, 8(11), 145. DOI: https://doi.org/10.5539/ass.v8n11p145

Abdulai, A., & Crolerees, A. (2001). Determinants of Income Diversification Amongst Rural Households in Southern Mali. Food Policy, 26(4), 437-452. DOI: https://doi.org/10.1016/S0306-9192(01)00013-6

Ackah, C. (2013). Nonfarm Employment and Incomes in Rural Ghana. Journal of International Development, 25(3), 325-339. DOI: https://doi.org/10.1002/jid.1846

Adenutsi, D. E. (2010) Long-Run Macroeconomic Impact of International Migrant Remittances On Human Development in Low-Income Countries: A Panel Analysis of Sub-Saharan Africa. Journal of International Economic Studies 24, 113–132.

Ahmad, N., & Sadaqat, M. (2016). Social Capital Household Welfare and Poverty: Evidence from Pakistan. The Pakistan Development Review, 467-482. DOI: https://doi.org/10.30541/v55i4I-IIpp.467-482

Akerele, D., Momoh, S., Adewuyi, S. A., Phillip, B. B., & Ashaolu, O. F. (2012). Socioeconomic Determinants of Poverty Among Urban Households in South-West Nigeria. International Journal of Social Economics, 39(3), 168-181. DOI: https://doi.org/10.1108/03068291211199341

Ali, S., Chaudhry, I, S., & Farooq, F. (2012). Human Capital Formation and Economic Growth in Pakistan. Pakistan Journal of Social Sciences, 32, (1), 229-240.

Arif, G. M., & Bilquees, F. (2007). Chronic and Transitory Poverty in Pakistan: Evidence from A Longitudinal Household Survey. The Pakistan Development Review, 111-127. DOI: https://doi.org/10.30541/v46i2pp.111-127

Attanasio, O., Meghir, C., Nix, E., & Salvati, F. (2017). Human Capital Growth and Poverty: Evidence from Ethiopia and Peru. Review of Economic Dynamics, 25, 234-259. DOI: https://doi.org/10.1016/j.red.2017.02.002

Baranowska-Rataj, A., Styrc, M., & Da Silva, G. C. (2015). The Impact of Family Size On Educational Attainment in Cross-Country Comparative Perspective.

Barro, R. J., & Lee, J. W. (1993). International Comparisons of Educational Attainment. Journal of Monetary Economics, 32(3), 363-394. DOI: https://doi.org/10.1016/0304-3932(93)90023-9

Barro, R. J. (1994). Democracy & Growth (No. w4909). DOI: https://doi.org/10.3386/w4909

Barro, R. J., & Lee, J. W. (1994, June). Sources of Economic Growth. In Carnegie-Rochester Conference Series On Public Policy (Vol. 40, Pp. 1-46). North-Holland. DOI: https://doi.org/10.1016/0167-2231(94)90002-7

Barro, R. J. (1996). Determinants of Economic Growth: A Cross-Country Empirical Study (No. W5698). National Bureau of Economic Research. DOI: https://doi.org/10.3386/w5698

Barro, R. J. (2002). Education as A Determinant of Economic Growth. DOI: https://doi.org/10.3386/w9682

Becker, G. (1964). Human Capital, NY. GS Becker.

Bhukuth, A., Roumane, A., & Terrany, B. (2018). Cooperative, Human Capital and Poverty: A Theoretical Framework. Economics & Sociology, 11(2), 11-18. DOI: https://doi.org/10.14254/2071-789X.2018/11-2/1

Biyase, M., & Zwane, T. (2018). An Empirical Analysis of the Determinants of Poverty and Household Welfare in South Africa. The Journal of Developing Areas, 52(1), 115-130. DOI: https://doi.org/10.1353/jda.2018.0008

Blake, J. (1989). Family Size and Achievement. University of California Press. DOI: https://doi.org/10.1525/9780520330597

Chaudhry, I. S. (2009). Poverty Alleviation in Southern Punjab (Pakistan): An Empirical Evidence from The Project Area of Asian Development Bank. International Research Journal of Finance and Economics, 23(23), 23-32.

Chen, K. M., & Wang, T. M. (2015). Determinants of Poverty Status in Taiwan: A Multilevel Approach. Social Indicators Research, 123(2), 371-389. DOI: https://doi.org/10.1007/s11205-014-0741-4

Cruz, M., & Ahmed, S. A. (2018). On The Impact of Demographic Change On Economic Growth and Poverty. World Development, 105, 95-106. DOI: https://doi.org/10.1016/j.worlddev.2017.12.018

Downey, D. B. (2001). Number of Siblings and Intellectual Development: The Resource Dilution Explanation. American Psychologist, 56(6-7), 497 DOI: https://doi.org/10.1037/0003-066X.56.6-7.497

Government of Pakistan (2015-16). National Poverty Report. Planning Commission of Pakistan, Islamabad.

Government of Pakistan (2015-16). Pakistan Economic Survey. Federal Bureau of Statistics, Islamabad.

Government of Pakistan (2016-17). Pakistan Economic Survey. Federal Bureau of Statistics, Islamabad.

Government of Pakistan (2016-17). Multidimensional Poverty in Pakistan. Ministry of Planning, Development and Reform. Islamabad.

Government of Pakistan (2017-18). Pakistan Economic Survey. Federal Bureau of Statistics, Islamabad.

Government of Pakistan (2018-19). Pakistan Economic Survey. Federal Bureau of Statistics, Islamabad.

Greene, W. H. (2003). Econometric Analysis. Pearson Education India.

Gujarati, D. (2012). Econometrics By Example. Macmillan.

Handa, S., IMF, M. R. A., Stampini, M., & Winters, P. (2005). Agricultural Subsidies, Human Capital Development and Poverty Reduction: Evidence from Rural Mexico. Department of Public Policy, University of North Carolina, Unpublished.

Hines, A. L., & Simpson, N. B. (2019). Migration, Remittances and Human Capital Investment in Kenya. Economic Notes: Review of Banking, Finance and Monetary Economics, 48(3), E12142. DOI: https://doi.org/10.1111/ecno.12142

IMF. (2018). World Economic Outlook. International Monetary Fund.

Jin, Y., & Xie, Y. (2017). Social Determinants of Household Wealth and Income in Urban China. Chinese Journal of Sociology, 3(2), 169-192. DOI: https://doi.org/10.1177/2057150X17695689

Kakwani, N. (1993). Poverty and Economic Growth with Application to Côte d'Ivoire. Review of Income and Wealth, 39(2), 121-139. DOI: https://doi.org/10.1111/j.1475-4991.1993.tb00443.x

Kar, S & S, Marjit. (2001). Informal Sector in General Equilibrium: Welfare Effects of Trade Policy Reforms, International Review of Economics and Finance, 10, 289-300. DOI: https://doi.org/10.1016/S1059-0560(01)00088-0

Khalid, U., Shahnaz, L., & Bibi, H. (2005). Determinants of Poverty in Pakistan: A Multinomial Logit Approach. The Lahore Journal of Economics, 10: 1 (Summer 2005) Pp. 65-81. DOI: https://doi.org/10.35536/lje.2005.v10.i1.a5

Khatun, R. (2015). The Impact of Micro-Level Determinants of Poverty in Bangladesh: A Field Survey. International Journal of Research in Management & Business Studies (IJRMBS 2015), 2(2).

Mankiw, N, G., Romar, D., & Weil, D, N. (1992). A Contribution to The Empirics of Economic Growth. The Quarterly Journal of Economics, 107(2), 407-437. DOI: https://doi.org/10.2307/2118477

Mcfadden, D. (2008). Human Capital Accumulation and Depreciation. Review of Agricultural Economics, 30(3), 379-385. DOI: https://doi.org/10.1111/j.1467-9353.2008.00411.x

Mincer, J. (1958). Investment in Human Capital and Personal Income Distribution. Journal of Political Economy, 66(4), 281-302. DOI: https://doi.org/10.1086/258055

Minot, N., Baulch, B., & Epprecht, M. (2006). Poverty and Inequality in Vietnam: Spatial Patterns and Geographic Determinants (No. 605-2016-40192).

Narayan-Parker, D. (1999). Bonds and Bridges: Social Capital and Poverty (Vol. 2167). World Bank Publications.

Narayan, D. (2002). Bonds and Bridges: Social Capital and Poverty. Social Capital and Economic Development: Well-Being in Developing Countries. Northampton, MA: Edward Elgar, 58-81.

Nguyen, H. M., & Nguyen, T. A. (2019). Investigating The Determinants of Household Welfare in The Central Highland, Vietnam. Cogent Economics & Finance, 7(1), 1684179 DOI: https://doi.org/10.1080/23322039.2019.1684179

Qureshi, S. K., & Arif, G. M. (2001). Profile of Poverty in Pakistan, 1998-99. Pakistan Institute of Development Economics, Islamabad. MIMAP Technical Paper Series, 5.

Ravallion, M., & Jalan, J. (1998). Determinants of Transient and Chronic Poverty: Evidence from Rural Chinaminot. The World Bank. DOI: https://doi.org/10.1596/1813-9450-1936

Rizal, A., & Nurruhwati, I. (2018). Contribution of Human and Capital Toward Regional Economic Growth of Garut District of West Java Province of Indonesia. Global Scientific Journal, 6(5), 172-179.

Sen, A. (1999). Commodities and Capabilities. OUP Catalogue.

Singh, K. (1999). Rural Development: Principles, Policies and Management, 2nd Edition, Sangha Publications, India Ltd, New Delhi.

Tuyen, T. Q., Lim, S., Cameron, M. P., & Huong, V. V. (2014). Farmland loss and livelihood outcomes: A Micro Econometric Analysis of Household Surveys in Vietnam. Journal of the Asia Pacific Economy, 19(3), 423-444. DOI: https://doi.org/10.1080/13547860.2014.908539

Tuyen, T. Q. (2015). Socio-Economic Determinants of Household Income Among Ethnic Minorities in The North-West Mountains, Vietnam. Croatian Economic Survey, 17(1), 139-159.

Vacaflores, D. E. (2018). Are Remittances Helping Lower Poverty and Inequality Levels in Latin America? The Quarterly Review of Economics and Finance, 68, 254-265. DOI: https://doi.org/10.1016/j.qref.2017.09.001

Vedia-Jerez, D. H., & Chasco, C. (2016). Long-Run Determinants of Economic Growth in South America. Journal of Applied Economics, 19(1), 169-192. DOI: https://doi.org/10.1016/S1514-0326(16)30007-1

Warren, M. R., Thompson, J. P., & Saegert, S. (2001). The Role of Social Capital in Combating Poverty. Social Capital and Poor Communities, 3, 1-28.

World Bank (Various Years 1). World Development Report, 2000/2001, 1998–99, 1997, 1995, And 1993 Issues. The World Bank, Washington, DC.

World Bank (Various Years). The World Tables. Washington, DC: World Bank.

World Bank. (2001). World Development Report 2000/ 2001: Attacking Poverty. Washington, DC: The World Bank.

World Bank. (2010). Paraguay - Poverty Assessment: Determinants and Challenges for Poverty Reduction (English). Washington, DC: World Bank.

World Bank (2006) Summary of Key Findings and Recommendation for Pakistan: Poverty, 2004-05. Islamabad.

World Bank. 2013. The World Bank Annual Report 2013: End Extreme Poverty, Promote Shared Prosperity: Main Report (English). Washington DC; World Bank DOI: https://doi.org/10.1596/978-0-8213-9568-4

World Bank. (2014). World Development Indicators. Washington, DC: World Bank Group.

World Bank (2015). Global Poverty Line Update. Https://Www.Worldbank.Org/En/Topic/Poverty/Brief/Global-Poverty-Line-Faq

World Bank (2017). Monitoring Global Poverty: Report of The Commission On Global Poverty. Washington, DC: World Bank

Wu, Y. (2012). Trends and Prospects in China's Research and Development Sector. Australian Economic Review, 45(4), 467-474. DOI: https://doi.org/10.1111/j.1467-8462.2012.00707.x

Published
2021-09-30
How to Cite
Shah, S. Z. A., Chaudhry, I. S., & Farooq, F. (2021). Examining the Poverty Human Capital and Economic Development Nexus in Pakistan: Evidence from Southern Punjab. Journal of Business and Social Review in Emerging Economies, 7(3), 773-783. https://doi.org/10.26710/jbsee.v7i3.1920