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Examining the Spending Patterns of Compensated Displaced Households (CDHs): Empirical Evidence from DiamerBasha Dam Site


  • Arsalan Ahmad Khan

    (MPhil Scholar, Department of Economics, University of Peshawar, KP, Pakistan.)

  • Saranjam Baig

    (Assistant Professor, Department of Economics, Karakorum International University, Gilgit, Pakistan.)

  • Abid Hussain

    (Lecturer,Department of Economics,Karakorum International University, Gilgit, Pakistan.)


This research has two objectives. First, it explores the spending patterns of the households who receive monetary compensation for their land that government takes over for initiating national projects; in our case, it is about building the countrys largest dam. Second, it examines what we call the demonstration effects. Literature abounds with cases examining behaviors of internally displaced individuals while the opposite is true for the compensated displaced households. This is the backdrop, this research carried out a field survey to collect data for 192 households. The compensation received is divided into communal land compensation and private land compensation. In line with arguments with the Keynesian consumption function that provides the theoretical foundation to our empirical work, findings suggest a positive and significant correlation between spending patterns and private land compensation while the communal compensation appears to be insignificant. Education and one out of two demonstration effects have positive influence on spending behaviors.

Suggested Citation

  • Arsalan Ahmad Khan & Saranjam Baig & Abid Hussain, 2019. "Examining the Spending Patterns of Compensated Displaced Households (CDHs): Empirical Evidence from DiamerBasha Dam Site," Global Regional Review, Humanity Only, vol. 4(4), pages 73-84, December.
  • Handle: RePEc:aaw:grrjrn:v:4:y:2019:i:4:p:73-84
    DOI: 10.31703/grr.2019(IV-IV).09

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    References listed on IDEAS

    1. Joseph J. Cordes, 1979. "Compensation through Relocation Assistance," Land Economics, University of Wisconsin Press, vol. 55(4), pages 486-498.
    2. Frank Moulaert & Loïc De Cannière, 1988. "Income Inequality and Consumptive Spending Behavior: Empirical Evidence from the 1978-79 Household Budget Survey in Belgium," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 10(2), pages 225-249, January.
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    More about this item


    Diamer-Basha Dam; Private Land Compensation; Communal Compensation; Spending Patterns;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General


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