Impact of Socio Economics Variables on Poverty: An Empirical Analysis for District Chitral of KPK Pakistan

This study investigates the impact of socio economic variables on household poverty in Chitral valley, the largest district of Khyber Pakhtunkhwa Province of Pakistan. The household poverty index has been constructed while calculating multidimensional poverty index for each household. For this purpose, a representative sample of 252 households have been surveyed while distributing questionnaire to each household. The data have been collected through stratified sampling technique and the collected data then analyzed while applying descriptive statistical tools and regression techniques. The regression analysis has done while taking explanatory variables as income of household, gender of household head, lives stock population of household, age of household head and dependence ratio of household. Results of the regression analysis show that lives stock population and income of household have significant negative impact on household poverty. The results further reveal that dependency ratio has also significant positive impact on household poverty. Different diagnostics tests have also been applied in order to test the assumptions of liner regression model and the results of all the diagnostics show the absence of econometric problems in the estimated model.