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Income, Public Social Services, and Capability Development: A Cross-district Analysis of Pakistan

Rizwana Siddiqui

Development Economics Working Papers from East Asian Bureau of Economic Research

Abstract: Is household income enough for human development or should government direct resources towards the provision of social services to improve capabilities of individuals? The former is emphasised by the World Bank, and the latter by the United Nation Development Programme (UNDP). This paper tests both sides of the question by estimating a basic needs policy model for Pakistan, using cross-district data for the year 1998-99. The results are consistent with the view that government provision of social services affects human capabilities significantly. However, the ultimate constraints on the sustainable capability development are the availability of material resources.

Keywords: Basic Needs; Capabilities and Income Poverty; Public Provision of Social Services and Household Income (search for similar items in EconPapers)
JEL-codes: I31 I32 I38 D31 (search for similar items in EconPapers)
Date: 2008-01
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