Macro level Determinants of Poverty: Investigation through poverty mapping of districts of Pakistan

Abstract

The study explores the spatial patterns of poverty in Pakistan through two dimensions: asset accumulation and basic needs. For this purpose Pakistan Standard of Living Measurement 08-09 is employed to construct an Asset Index and a Basic Needs index, at a district level, through the use of household level indicators. The study finds a clear north south divide, with particular concentration of better off districts in the north east of the country. Additionally, regression analysis is carried out to help identify the macro level factors contributing towards the observed pattern. Results reveal infrastructural and industrial development to be significant factors behind a district’s well being. This indicates that public policy directed towards developing deprived districts should be centered on these factors, specifically expanding road networks, and incentives for industrial development in those districts.