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Financial Inclusion, Socioeconomic Disaster Risks and Sustainable Mountain Development: Empirical Evidence from the Karakoram Valleys of Pakistan

Author

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  • Kifayat Ullah

    (Department of Economics and Agriculture Economics , Pir Mehr Ali Shah Arid Agriculture University, Muree Road, Shamsabad, Rawalpindi 46000, Pakistan)

  • Abdul Qayyum Mohsin

    (Department of Economics and Agriculture Economics , Pir Mehr Ali Shah Arid Agriculture University, Muree Road, Shamsabad, Rawalpindi 46000, Pakistan)

  • Abdul Saboor

    (Department of Economics and Agriculture Economics , Pir Mehr Ali Shah Arid Agriculture University, Muree Road, Shamsabad, Rawalpindi 46000, Pakistan)

  • Saranjam Baig

    (College of Economics and Political Science, Sultan Qaboos University, Muscat 999046, Oman)

Abstract

Does financial inclusion contribute to sustainable mountain development by providing access to financial resources and creating economic opportunities for poor mountain people? Keeping this question in mind, the present study aimed to investigate the nexus between financial inclusion and improvement in the living standards of mountain people, and reduction in socioeconomic disaster risks (economic poverty, multidimensional poverty and income inequality). For empirical investigation, the study employed Quasi Experimental Designs, Foster, Greer and Thorbecke poverty measures, Alkire et al. methodology, Gini Index and Quintile technique to assess the impact of financial inclusion on the living standards and reduction of economic poverty, multidimensional poverty and income inequality, respectively. We used the Logistic Regression technique to identify major drivers of socioeconomic disaster risks in the study area. The study collected quantitative and qualitative household level data from 424 households through structured questionnaires using multistage sampling technique for analysis. The findings of the study revealed a positive synergy among inclusive finance and living standards and a negative connection between financial inclusion and socioeconomic disaster risks in the Karakoram valleys of Pakistan. The logistic regression results also recognized financial inclusion as a potential determinant of economic poverty reduction. However, financial inclusion as a potential tool to eradicate multidimensional poverty in the study area showed insignificant results. These findings can help policy-makers and other stakeholders to understand the dynamics of socioeconomic disaster risks and the role of financial inclusion in their reduction to accomplish sustainable mountain development in the Karakoram valleys of Pakistan.

Suggested Citation

  • Kifayat Ullah & Abdul Qayyum Mohsin & Abdul Saboor & Saranjam Baig, 2020. "Financial Inclusion, Socioeconomic Disaster Risks and Sustainable Mountain Development: Empirical Evidence from the Karakoram Valleys of Pakistan," Sustainability, MDPI, vol. 12(22), pages 1-26, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9737-:d:449131
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