Infrastructure and Households’ Incomes in Pakistan: A Cross Province Comparative Analysis of Rural Areas
DOI:
https://doi.org/10.26710/reads.v2i1.122Keywords:
Personal Income, Infrastructure, Rural Analysis, Households, Micro DataAbstract
Lack of earning opportunities in rural areas of developing countries is
the key constraint to rural development and infrastructure has the force
to increase such activities. Hence, this study attempts to summarize
status of rural infrastructural development along with exploring its role
for enhancement of rural household's income in Pakistan. On the basis
of ‘Pakistan 2008 MOUZA Statistics”, a cross-province comparative
analysis points out devastated state of rural infrastructural development
in Pakistan which is observed to be miserable on account of skewed
distribution while favouring Punjab and depriving Balochistan. This
study also exploits income generation model based on production
function while including infrastructure as external factor with the
hypothesis that it has multiplier effect on incomes. For this purpose
Household Integrated Economic Survey (HIES) for the year 2005-06 is
used for rural areas only, which is latest in the sense that information on
rural communities is uniquely available in this dataset. On the basis of
analysis using log-lin functional form it has been concluded in this study
that even infrastructural development has a positive role for rural
households' incomes but its role is secondary in comparison to other
attributes i.e. household size, livestock holdings, head's gender, age and
education. It is further established that for rural households’ income
even infrastructure for energy provision is most important but
infrastructural need for different regions is different.
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