Poverty Human Capital and Economic Development Nexus: A Case Study of Multan Division

  • 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: : Poverty, Human Capital, Economic Development, Per capita income, Poverty alleviation


Purpose: Countries across the world have acknowledged that poverty alleviation has to be of critical importance among the objectives of economic development. This paper sheds light on the Multan division, as one of the important divisions of Southern Punjab, Pakistan.

Design/Methodology/Approach: The primary data was collected through a household survey during the year 2019, using the Binomial Logit and Ordinary Least Squares (OLS) regression techniques.

Findings: The study concluded that the occupation of the household head in the primary sector and large household size are significant and positively related to household poverty. However, the human capital of the household is found to be significant and negatively related to household poverty in the Multan division. Economic development or per capita income of the households are found to be significant and positively related to the human capital of the households.

Implications/Originality/Value: The provision of job opportunities by the government would be helpful in poverty alleviation and the development of this region.


Download data is not yet available.


Metrics Loading ...


Abbas, Q. (2000). The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India. The Pakistan Development Review, 39 (4), 451–473. DOI: https://doi.org/10.30541/v39i4IIpp.451-473

Adekoya, O. D. (2018). Impact of Human Capital Development on Poverty Alleviation in Nigeria. International Journal of Economics & Management Sciences, 7(4), 1-8. DOI: https://doi.org/10.4172/2162-6359.1000544

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.

Agenor, P. (1996). The Labor Market and Economic Adjustment, IMF Staff Papers 32, 261- 335. DOI: https://doi.org/10.2307/3867399

Akinbode, S, O. (2013). Profiles and Determinants of Poverty Among Urban Households in South-West Nigeria. American Journal of Economics, 3(6), 322-329.

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.

Amjad, R., & Kemal, A. R. (1997). Macroeconomic Policies and Their Impact On Poverty Alleviation in Pakistan. The Pakistan Development Review, 39-68. DOI: https://doi.org/10.30541/v36i1pp.39-68

Anyanwu, J. C. (2014). Marital Status, Household Size and Poverty in Nigeria: Evidence from The 2009/2010 Survey Data. African Development Review, 26(1), 118-137. DOI: https://doi.org/10.1111/1467-8268.12069

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

Arif, G. M., & Farooq, S. (2014). Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey. The Pakistan Development Review, 53(2), 71-98. DOI: https://doi.org/10.30541/v53i2pp.71-98

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.

Becker, G. S. (1995). Human Capital and Poverty Alleviation. World Bank, Human Resources Development and Operations Policy

Becker, G. S., & Lewis, H. G. (1973). On The Interaction Between the Quantity and Quality of Children. Journal of Political Economy, 81(2, Part 2), S279-S288. DOI: https://doi.org/10.1086/260166

Becker, G. S., & Tomes, N. (1976). Child Endowments and The Quantity and Quality of Children. Journal of Political Economy, 84(4, Part 2), S143-S162. DOI: https://doi.org/10.1086/260536

Benhabib, J., & Mark M. Spiegel. (1994). The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-Country Data. Journal of Monetary Economics, 34, 143-173. DOI: https://doi.org/10.1016/0304-3932(94)90047-7

Datt, G., & Jolliffe, D. (1999). Determinants of Poverty in Egypt, 1997 (No. 75). International Food Policy Research Institute (IFPRI).

Datt, G., & Ravallion, M. (1998). Farm Productivity and Rural Poverty in India. The Journal of Development Studies, 34(4), 62-85. DOI: https://doi.org/10.1080/00220389808422529

Desai, S. (1995). When Are Children from Large Families Disadvantaged? Evidence from Cross-National Analyses. Population Studies, 49(2), 195-210. DOI: https://doi.org/10.1080/0032472031000148466

Frankel, J & Romer, D. (1999). Does Trade Cause Growth? American Economic Review, 89 (3), 379-399. DOI: https://doi.org/10.1257/aer.89.3.379

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.

Hilson, G. (2009). Small-Scale Mining, Poverty and Economic Development in Sub-Saharan Africa: An Overview. Resources Policy, 34(1-2), 1-5. DOI: https://doi.org/10.1016/j.resourpol.2008.12.001

Jansen, H. G., Pender, J. L., Damon, A. L., & Schipper, R. A. (2006). Land Management Decisions and Agricultural Productivity in The Hillsides of Honduras (No. 1004-2016-78474).

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

Jirström, M., A. Andersson and G. Djurfeldt. (2011). Smallholders Caught in Poverty – Flickering Signs of Agricultural Dynamism. In African Smallholders: Food Crops, Markets and Policy. (Eds Djurfeldt Et Al.) London: CABI. Chapter 4, Pp 74-106. DOI: https://doi.org/10.1079/9781845937164.0074

Knowles, S., & Owen, P. D. (1995). Health Capital and Cross-Country Variation in Income Per Capita in The Mankiw–Romer–Weil Model. Economics Letters, 48(1), 99–106. DOI: https://doi.org/10.1016/0165-1765(94)00577-O

Lee, J. W., & Francisco, R. H. (2010). Human Capital Accumulation in Emerging Asia, 1970-2030. Asian Development Bank Economics Working Paper Series, (216). DOI: https://doi.org/10.2139/ssrn.1678386

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: https://doi.org/10.1016/0165-1765(94)00539-E

Litchfield, J. And Mcgregor, T. (2008). Poverty in Kagera, Tanzania: Characteristics, Causes and Constraints. PRUS Working Paper No.42. University of Sussex, Brighton. United Kingdom

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. DOI: https://doi.org/10.4337/9781781950388.00013

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

Pede, V. O., Luis, J. S., Paris, T. R., & Mckinley, J. D. (2011). Determinants of Household Income: A Quantile Regression Approach for Four Rice-Producing Areas in The Philippines. Asian Journal of Agriculture and Development, 9(1362-2016-107601), 65-76.

Rodriguez, A. G., & Smith, S. M. (1994). A Comparison of Determinants of Urban, Rural and Farm Poverty in Costa Rica. World Development, 22(3), 381-397. DOI: https://doi.org/10.1016/0305-750X(94)90129-5

UNDP, M. (2018). Human Development Report. The 2016 Global Multidimensional Poverty Index (MPI).

Unicef. (2016). Ending Extreme Poverty: A Focus on Children. Sustainable Development Goals in Rich Countries.

Unicef. (2017). Global Nutrition Report 2017: Nourishing The SDG. Https://Data.Unicef.Org/Resources/Global-Nutrition-Report-2017-Nourishing-Sdgs

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

How to Cite
Shah, S. Z. A., Chaudhry, I. S., & Farooq, F. (2021). Poverty Human Capital and Economic Development Nexus: A Case Study of Multan Division. Sustainable Business and Society in Emerging Economies, 3(4), 461-469. https://doi.org/10.26710/sbsee.v3i4.1924