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Transitions Out of Poverty: Drivers of Real Income Growth for the Poor in Rural Pakistan


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  • Dorosh, Paul A.
  • Malik, Sohail J.


In spite of rapid overall economic growth in the 1990s, rural poverty in Pakistan did not decline. Panel data covering rural households in four districts in Pakistan suggest that real incomes of many households declined between the early 1990s and 2002, in spite of modest gains in agricultural output at the provincial and national levels. Net crop income increased by 38 percent for the total sample and by 81 percent growth for poor farmers, whose total incomes rose by 23 percent. Nevertheless, rural non-agricultural incomes fell by 30 percent overall and by 16 percent for poor households, indicating that the income and employment multipliers of agricultural growth were insufficient to lead to substantial gains in rural non-farm incomes. A decline in remittances was also a major factor in reducing real incomes in three of the four districts. Controlling for other factors, electrification of the village and paved roads raise household real expenditures by about 75 and 100 percent, respectively, suggesting that accelerated public investments in village electrification could have a significant impact on rural poverty.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25387.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25387

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Keywords: Rural Development; Poverty; South Asia; Food Security and Poverty; I3; O18; O2;

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  1. Paul Dorosh & Muhammad Khan Niazi & Hina Nazli, 2003. "Distributional Impacts of Agricultural Growth in Pakistan: A Multiplier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(3), pages 249-275.
  2. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
  3. Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA.
  4. Sohail Jehangir Malik & Hina Nazli, 1998. "Rural Poverty and Land Degradation: A Review of the Current State of Knowledge," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 1053-1070.
  5. Neil McCulloch & Bob Baulch, 2000. "Simulating the impact of policy upon chronic and transitory poverty in rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 100-130.
  6. Sen, Binayak, 2003. "Drivers of Escape and Descent: Changing Household Fortunes in Rural Bangladesh," World Development, Elsevier, vol. 31(3), pages 513-534, March.
  7. Adams, Richard H. Jr. & He, Jane J., 1995. "Sources of income inequality and poverty in rural Pakistan:," Research reports 102, International Food Policy Research Institute (IFPRI).
  8. Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Hari Ram Lohano, 2009. "Poverty Dynamics in Rural Sindh, Pakistan," Working Papers id:2334, eSocialSciences.
  2. G. M. Arif & Faiz Bilquees, 2006. "Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey," MIMAP Technical Paper Series 2006:19, Pakistan Institute of Development Economics.
  3. World Bank, 2007. "Pakistan : Promoting Rural Growth and Poverty Reduction," World Bank Other Operational Studies 7984, The World Bank.


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