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

Arsalan Ahmad Khan, Saranjam Baig () and Abid Hussain
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Arsalan Ahmad Khan: MPhil Scholar, Department of Economics, University of Peshawar, KP, Pakistan.
Abid Hussain: Lecturer,Department of Economics,Karakorum International University, Gilgit, Pakistan.

Global Regional Review, 2019, vol. 4, issue 4, 73-84

Abstract: 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.

Keywords: Diamer-Basha Dam; Private Land Compensation; Communal Compensation; Spending Patterns (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aaw:grrjrn:v:4:y:2019:i:4:p:73-84

DOI: 10.31703/grr.2019(IV-IV).09

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