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Empirical Analysis of Factors Associated With Rural Poverty and Inequality in Sindh Pakistan

Qurat Ul Ain Memon, Shoaib Ahmed Wagan, Dong Chunyu, Xiao Shuangxi, Luan Jingdong

Abstract


Rural poverty and inequality are complex and multidimensional phenomena associated with several causes and effects. In Pakistan, many people are deprived from the health, housing, education, clothing, and human rights. This study’s aim is to determine the factors affecting poverty and inequality in rural households. The study was based on primary data collection method, simple random sampling method was applied in the households’ survey, a sample of 200 questionnaires was selected for the data collection process, descriptive statistics, correlation test and binary logistic regression model were used to estimate the factors associated with rural poverty. On the basis of income, 43 percent of the sampled population is below the poverty line and 57 percent is above, the poverty line has been estimated at 3030 rupees per person per month by the Planning Commission of Pakistan 2015-2016. The binary logit model result shows that land ownership, operational land holding, livestock ownership, and the presence of multiple income earners in a household, and having educated head of household all significantly reduces the chances of household’s rural poverty, meanwhile, larger household size, higher female-male ratio, and a larger number of infants significantly increases the chances of household’s rural poverty. Inequality in income distribution and assets (e.g., land and, livestock) were explored using the Gini coefficient based on the Lorenz curve. Inequality in income distribution, land ownership (acre), operational land holding (acre), and livestock ownership grew during the time period covered by the study as the gulf between high- and low income households increased.


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