Investigating the Poverty Human Capital and Economic Development Nexus in Dera Ghazi Khan Division: An Econometric Analysis

  • 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
Keywords: Human Capital, Economic Development, Household Poverty, Per capita income


Purpose: The present study focuses on the D. G. Khan division, which is one of the important divisions of Southern Punjab, Pakistan. Being less developed, this study tries to find out different factors that can contribute to the betterment of this region.

Design/Methodology/Approach: The study was based on primary data collected during the year 2019 using the Binomial Logit and Ordinary Least Squares (OLS) regression techniques.

Findings: The findings revealed that human capital is the most significant factor that can contribute to alleviating poverty and promoting the development of the D.G. Khan division.

Implications/Originality/Value: It is suggested from the present study that development expenditures on projects like schools, colleges and universities are mandatory for the promotion of human capital and prosperity of the households in the D.G. Khan division.


Download data is not yet available.

Article Analytics Summary


Ackah, C. (2013). Nonfarm Employment and Incomes in Rural Ghana. Journal of International Development, 25(3), 325-339. DOI:

Adams R. H. Jr. (2006). Remittances and Poverty in Ghana. World Bank Policy Research Paper 3838. Washington, DC. DOI:

Ali, S., & Ahmad, N. (2013). Human Capital and Poverty in Pakistan: Evidence from The Punjab Province. European Journal of Science and Public Policy, 11, 36-41

Amjad, R., & Kemal, A. R. (1997). Macroeconomic Policies and Their Impact on Poverty Alleviation in Pakistan. The Pakistan Development Review, 39-68. DOI:

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:

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:

Awan, M. S., Iqbal, N., & Waqas, M. (2011). The Impact of Human Capital On Urban Poverty: The Case of Sargodha City. Journal of Sustainable Development, 4(1), 143. DOI:

Azam, J. P., & Gubert, F. (2006). Migrants' Remittances and The Household in Africa: A Review of Evidence. Journal of African Economies, 15(Suppl_2), 426-462. DOI:

Berndt, E. R. (1991), “The Practice of Econometrics: Classic and Contemporary”, Reading. Addison-Wesley Publishing Company.

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:

Chen, S., & Wang, Y. (2001). China's Growth and Poverty Reduction: Recent Trends Between 1990 And 1999. The Economist, 23. DOI:

Collins, S. M. (2007). Economic Growth in South Asia: A Growth Accounting Perspective. South Asia: Growth and Regional Integration, 45-60.

Coulombe, H. And A. Mckay (1996) Modeling Determinants of Poverty in Mauritania. World Development 24:6, 1015–31. DOI:

Cruces, G., & Wodon, Q. (2003). Transient and Chronic Poverty in Turbulent Times: Argentina 1995-2002. Economics Bulletin, 9(3), 1-12.

Datt, G., & Ravallion, M. (1998). Farm Productivity and Rural Poverty in India. The Journal of Development Studies, 34(4), 62-85. DOI:

De Haan, M. (2010). Birth Order, Family Size and Educational Attainment. Economics of Education Review, 29(4), 576-588. DOI:

Desai, S. (1995). When Are Children from Large Families Disadvantaged? Evidence from Cross-National Analyses. Population Studies, 49(2), 195-210. DOI:

Downey, D. B. (1995). When Bigger Is Not Better: Family Size, Parental Resources, And Children's Educational Performance. American Sociological Review, 746-761. DOI:

Edoumiekumo, S, G., Karimo, T, M., & Tombofav, S, S. (2014). Determinants of Households’ Income Poverty in The South-South Geopolitical Zone of Nigeria. Journal of Studies in Social Sciences, 9(1), 101-115.

Estudillo, J. P., Sawada, Y., & Otsuka, K. (2008). Poverty and Income Dynamics in Philippine Villages, 1985–2004. Review of Development Economics, 12(4), 877-890. DOI:

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.

Hashmi, A, A., & Sial, M, H. (2008). Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab. The Pakistan Development Review, 47(4), 909–923. DOI:

Hassan, R., & Birungi, P. (2011). Social Capital and Poverty in Uganda. Development Southern Africa, 28(1), 19-37 DOI:

Jan, D., Eberle, P. R., Jan, A., Ali, G., & Khan, M. (2009). Absolute Poverty in Pakistan: Where Are the Poor Concentrated. Sarhad J. Agric, 25(2), 321-327.

Jehovaness, A. (2010). Determinants Of Rural Income In Tanzania: An Empirical Approach. Research Approach, 10(4).

Jongwanich, J. (2007). Workers’ Remittances, Economic Growth and Poverty In Developing Asia And The Pacific Countries (No. WP/07/01). United Nations Economic and Social Commission for Asia and The Pacific (ESCAP).

Kar, S., & Marjit, S. (2009). Urban Informal Sector and Poverty. International Review of Economics & Finance, 18(4), 631-642. DOI:

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:

Lee, D. W., & Lee, T. H. (1995). Human Capital and Economic Growth Tests Based On the International Evaluation of Educational Achievement. Economics Letters, 47(2), 219-225. DOI:

Lloyd, C. B., & Gage-Brandon, A. J. (1994). High Fertility and Children's Schooling in Ghana: Sex Differences in Parental Contributions and Educational Outcomes. Population Studies, 48(2), 293- 306. DOI:

Lucas Jr, R. E. (1993). Making A Miracle. Econometrica: Journal of The Econometric Society, 251-272. DOI:

Lucas R. (1988). On The Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42. DOI:

Maralani, V. (2008). The Changing Relationship Between Family Size and Educational Attainment Over the Course of Socioeconomic Development: Evidence from Indonesia. Demography, 45(3), 693- 717. DOI:

Marjit, S; S. Kar and R. Acharyya (2006), Agricultural Prospects and Informal Wage, Forthcoming, Economic Modelling. DOI:

Middendorf, T. (2006). Human Capital and Economic Growth in OECD Countries. Jahrbücher Für Nationalökonomie Und Statistik, 226(6), 670-686. DOI:

Mukherjee, S., & Benson, T. (2003). The Determinants of Poverty in Malawi, 1998. World Development, 31(2), 339-358. DOI:

Musgrove, P. (1980). Household Size and Composition, Employment, And Poverty in Urban Latin America. Economic Development and Cultural Change, 28(2), 249-266. DOI:

Ndambiri, H. K., Ritho, C., Ng’ang’a, S. I., Kubowon, P. C., Mairura, F. C., Nyangweso, P. M., ... & Cherotwo, F. H. (2012). Determinants of Economic Growth in Sub-Saharan Africa: A Panel Data Approach. Management, 2(2), 18-24.

Oketch, M, O. (2006). Determinants of Human Capital Formation and Economic Growth of African Countries. Economics of Education Review, 25, 554-564. DOI:

Okoroafor, M. O., & Nwaeze, C. (2013). Poverty and Economic Growth in Nigeria 1990-2011. The Macrotheme Review, 2(6), 105-115.

Orbeta Jr, A. C. (2005). Poverty, Vulnerability and Family Size: Evidence from The Philippines. Poverty Strategies in Asia, 171.

Otsuka, K., Estudillo, J. P., & Yamano, T. (2010). The Role of Labor Markets and Human Capital in Poverty Reduction: Evidence from Asia and Africa. Asian Journal of Agriculture and Development, 7(1362-2016-107685), 23-40

Quartey, P. (2006). The Impact of Migrant Remittances On Household Welfare in Ghana (No. RP_158). African Economic Research Consortium.

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.

Rigg, J. (2006). Land, Farming, Livelihoods, And Poverty: Rethinking The Links in The Rural South. World Development, 34(1), 180-202. DOI:

Šimco, J., Ţuaca, L. (2015). Determinants of Human Capital, Jönköping University, Sweden.

Smith, K. (2007). Determinants of Soviet Household Income. European Journal of Comparative Economics, 4(1).

Takahashi, K., & Otsuka, K. (2008). Human Capital Investment and Poverty Reduction Over Generations: A Case from The Rural Philippines, 1979-2003. Rural Poverty and Income Dynamics in Asia and Africa. Abingdon, UK: Routledge.

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:

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.

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.

Vocational Training Research In Europe: Background Report. Luxembourg: EUR-OP.

Woolard, I., & Leibbrandt, M. (1999). Household Incomes, Poverty and Inequality in A Multivariate Framework (No. 99031).

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.

How to Cite
Shah, S. Z. A., & Chaudhry, I. S. (2021). Investigating the Poverty Human Capital and Economic Development Nexus in Dera Ghazi Khan Division: An Econometric Analysis. Journal of Business and Social Review in Emerging Economies, 7(4), 809-819.