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Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis

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Abstract

The role of infrastructure in poverty alleviation remains ambiguous due to weak institutions in developing countries. Considering spatial dependence, this study provides empirical evidence on the role of rural infrastructure in poverty alleviation using district-wise data of Pakistan. Results indicate positive direct as well as spatial spillover effects of financial infrastructure and female education infrastructure while positive direct effects of energy infrastructure are observed. The insignificant role of health and transportation infrastructure in poverty alleviation is a matter of serious concern. From a policy point of view, allocation of sufficient financial resources, improvement of female education infrastructure in rural areas and reformulation of health and transportation policies should be priority steps for poverty alleviation. An adverse effect of male education infrastructure on poverty reduction is detected, which needs further exploration. Adverse spillover effects of water and sanitation infrastructure on poverty may suggest the authorities to revise the implementation procedure of National Sanitation and Drinking Water Policy. The analysis might be relevant to the South Asian region due to homogeneous economic development. Moreover, the study provides evidence informing the debate on balanced regional development in developing countries with a particular focus on high and medium level of poverty clusters.

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Availability of Data and Material

Yes (http://www.pbs.gov.pk).

Code Availability

GeoDa, R software and Stata 15.

Notes

  1. This is the only limitation related to data of rural infrastructure that the survey has not been conducted after 2008 in Pakistan. However, analysis based on the available data set may be relevant into policy making as Government official report of the decade 2005–2015 (Government of Pakistan, 2016) shows no significant improvement in rural poverty and development. Moreover, future research could be extended by using newly survey data whenever it would be available.

  2. http://www.pbs.gov.pk/content/pakistan-mouza-census-2008.

  3. For detail, see http://www.pbs.gov.pk/.

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Acknowledgements

The author would like to express gratitude and wish to acknowledge Pakistan Bureau of Statistics for providing free access to use the Surveys’ data for the study.

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Authors and Affiliations

  1. Department of Mathematics and Statistics, FBAS, International Islamic University, Sector H-10, Islamabad, Pakistan

    Muhammad Akbar &  Abdullah

  2. School of Statistics, Dongbei University of Finance and Economics, Dalian, 116025, Liaoning, China

    Abdullah

  3. Department of Business Development and Technology, Aarhus University, Herning, Denmark

    Amjad Naveed

  4. Faculty of Economics and Management Sciences, Minhaj University, Lahore, Pakistan

    Shabib Haider Syed

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Akbar, M., Abdullah, Naveed, A. et al. Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis. Soc Indic Res 162, 475–499 (2022). https://doi.org/10.1007/s11205-021-02851-z

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