Disparities in economic achievement across the rural–urban divide in Pakistan: Implications for development planning

Nauman Ejaz and Thilak Mallawaarachchi

Economic Analysis and Policy, 2023, vol. 77, issue C, 487-512

Abstract: Growth, underpinned by augmented production, has been the dominant mode of development, where the focus is to influence the ability to increase the output and income of producers. In this process, differences in economic achievement are influenced collectively by geography, culture and institutions that determine effective capabilities. Yet, disparities associated with place are still widespread. In this paper, we draw some insights on the nature of economic deprivation amongst Pakistan households using Household Integrated Economic Survey (PSLM/HIES) data and treating the residential location as a key parameter of interest. In relating to the well-known discussion on rural–urban divide, we identify some commonalities in location-specific attributes in the achievement of economic-wellbeing. The analyses confirm the existing knowledge that poverty and well-being have strong place attachments, favouring urban areas as locations of greater relative well-being due to low levels of deprivation, in particular health, education and food security. In discussing how location may predispose inhabitants to deprivations or vulnerabilities, we identify some opportunities to realign development focus towards meeting local needs and raising aspirations for self-empowerment by better focusing on the nature of economic linkages that supports livelihood diversity.

Keywords: Income inequality; Rural transformation; Assets; Wealth; Economic participation; Pakistan (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:77:y:2023:i:c:p:487-512

DOI: 10.1016/j.eap.2022.11.023

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