Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis

Sustainable income growth and poverty reduction remain critical challenges at the forefront of research in Pakistan, particularly in rural areas. To overcome these challenges, the role of rural transformation (RT) has emerged and gained importance in recent years. The present study is based on distr...

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Main Authors: ABEDULLAH, Shujaat FAROOQ, Farah NAZ
Format: Article
Language:English
Published: KeAi Communications Co., Ltd. 2023-12-01
Series:Journal of Integrative Agriculture
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Online Access:http://www.sciencedirect.com/science/article/pii/S2095311923004252
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author ABEDULLAH
Shujaat FAROOQ
Farah NAZ
author_facet ABEDULLAH
Shujaat FAROOQ
Farah NAZ
author_sort ABEDULLAH
collection DOAJ
description Sustainable income growth and poverty reduction remain critical challenges at the forefront of research in Pakistan, particularly in rural areas. To overcome these challenges, the role of rural transformation (RT) has emerged and gained importance in recent years. The present study is based on district-level data and covers the period from 1981 to 2019. The study attempts to quantify the role of rural transformation in boosting rural per capita income and alleviating rural poverty in the country. The study also aims to explore the impact of stages of rural transformation on rural per capita income and rural poverty alleviation. The empirical findings reveal that rural transformation (RT1 and RT2) is essential in enhancing rural per capita income and alleviating rural poverty. The role of the share of high-value crops (RT1) is more pronounced than the share of non-farm employment (RT2) in boosting rural per capita income and poverty alleviation. The trend of larger contribution of RT1 to enhance rural per capita income also continued at 2nd stage of rural transformation. In the case of poverty reduction, at 3rd stage of rural transformation, the role of RT2 is dominant. Our results indicate that districts at higher stages of rural transformation (both RT1 and RT2) tend to correlate positively with increased rural per capita income and reduced poverty rates, suggesting that progress in rural transformation is associated with improved economic conditions. However, it is important to note that this correlation does not necessarily imply a direct causal relationship between rural transformation and these economic outcomes; other factors may have influenced this relationship. In addition, the welfare impacts are more noticeable among the districts where a simultaneous shift from grain crops to cash crops and from farm employment to non-farm employment is observed. The study provides baseline information to learn experiences from fast-growing districts and to replicate the strategies in other districts, which boosts the RT process that may increase rural per capita income and enhance poverty reduction efforts.
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spelling doaj-art-6ece0cffc5b14302bf836c7ed9f05b8d2025-08-02T10:37:38ZengKeAi Communications Co., Ltd.Journal of Integrative Agriculture2095-31192023-12-01221236103623Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis ABEDULLAH0Shujaat FAROOQ1Farah NAZ2Correspondence ABEDULLAH, Tel: +92-51-9248032; Pakistan Institute of Development Economics (PIDE), Islamabad 44000, PakistanPakistan Institute of Development Economics (PIDE), Islamabad 44000, PakistanPakistan Institute of Development Economics (PIDE), Islamabad 44000, PakistanSustainable income growth and poverty reduction remain critical challenges at the forefront of research in Pakistan, particularly in rural areas. To overcome these challenges, the role of rural transformation (RT) has emerged and gained importance in recent years. The present study is based on district-level data and covers the period from 1981 to 2019. The study attempts to quantify the role of rural transformation in boosting rural per capita income and alleviating rural poverty in the country. The study also aims to explore the impact of stages of rural transformation on rural per capita income and rural poverty alleviation. The empirical findings reveal that rural transformation (RT1 and RT2) is essential in enhancing rural per capita income and alleviating rural poverty. The role of the share of high-value crops (RT1) is more pronounced than the share of non-farm employment (RT2) in boosting rural per capita income and poverty alleviation. The trend of larger contribution of RT1 to enhance rural per capita income also continued at 2nd stage of rural transformation. In the case of poverty reduction, at 3rd stage of rural transformation, the role of RT2 is dominant. Our results indicate that districts at higher stages of rural transformation (both RT1 and RT2) tend to correlate positively with increased rural per capita income and reduced poverty rates, suggesting that progress in rural transformation is associated with improved economic conditions. However, it is important to note that this correlation does not necessarily imply a direct causal relationship between rural transformation and these economic outcomes; other factors may have influenced this relationship. In addition, the welfare impacts are more noticeable among the districts where a simultaneous shift from grain crops to cash crops and from farm employment to non-farm employment is observed. The study provides baseline information to learn experiences from fast-growing districts and to replicate the strategies in other districts, which boosts the RT process that may increase rural per capita income and enhance poverty reduction efforts.http://www.sciencedirect.com/science/article/pii/S2095311923004252rural transformationrural incomerural povertyagriculturepanel analysis
spellingShingle ABEDULLAH
Shujaat FAROOQ
Farah NAZ
Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
Journal of Integrative Agriculture
rural transformation
rural income
rural poverty
agriculture
panel analysis
title Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
title_full Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
title_fullStr Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
title_full_unstemmed Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
title_short Developing strategy for rural transformation to alleviate poverty in Pakistan: Stylized facts from panel analysis
title_sort developing strategy for rural transformation to alleviate poverty in pakistan stylized facts from panel analysis
topic rural transformation
rural income
rural poverty
agriculture
panel analysis
url http://www.sciencedirect.com/science/article/pii/S2095311923004252
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AT farahnaz developingstrategyforruraltransformationtoalleviatepovertyinpakistanstylizedfactsfrompanelanalysis