• Dr. Asim Iqbal1,Dr. Ghulam Mustafa2,Dr. Rana Tahir Naveed3,Dr. Muhammad Usman4 Maryam Zafar5
Keywords: Agglomeration; Agglomeration Economies; Gender Disparity; Poverty; Punjab


The basic Islamic sources reveal that Islam abominates poverty and gives a favorable structure to reduce it. The population growth, rural urban migration and poverty are the debateable issues particularly in the developing Islamic world. This paper investigates the spillover effects of population agglomeration on poverty in the Punjab. The data has been obtained from the Multiple Indicator Cluster Survey (MICS) for the year 2011 which is conducted by the Punjab Bureau of Statistics (2011).  First, this study measures the poverty rate in different districts of Punjab. Secondly, this study used Logistic regression to examine the impact of population agglomeration, household head characteristics and demographic variables on poverty. The results show that regional disparity exist among different districts of Punjab in terms of poverty. Moreover, spillover effects of population concentration on average help to reduce poverty. The results show that education, wealth status of household head, gender of household head, household heads that are living in urban areas, occupation (working manually) and household heads who are living Gujranwala are less likely to being poor in Punjab, Pakistan. While the family size and marital statuses (married) are more likely to being poor. On the other hand, the variables age, age squared, Bahawalpur and Sargodha have no impact in determining poverty. Overall, the study suggest that due to population concentration, business activities of a particular district reduces poverty.


Alkire, S and J. Foster., (2011). Understandings and Misunderstandings of Multidimensional Poverty Measurement. Journal of Economic Inequality, 9(2): 289–314.
Alkire, S and J.M. Roche., (2011). Beyond Headcount: Measures that Reflect the Breadth and Components of Child Poverty. OPHI WORKING NO.45, July 2011.
Alkire, S and M.E. Santos., (2014). Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index. World Development, 59: 251-274.
ANDE., (2012). Small and growing businesses: Investing in the Missing Middle for Poverty Alleviation. Washington, D.C: Aspen Network of Development Entrepreneurs, March 2012.
Asian Development Bank., (2007). Agricultural Land Conversion for Industrial and Commercial Use: Competing Interests of the Poor, In ADB, ed., Markets and Development Bulletin, Hanoi, Vietnam, Asian Development Bank, 85-93.
Ayala, L., A. Jurando and J.P Mayo., (2011). Income Poverty and Multidimensional Deprivation: Lesson from Cross- Regional Analysis. Review of income and wealth, 57(1):40-60.
Ayyagari, M., A.D. Kunt and V. Maksimovic., (2011). Small vs. young firms across the world: contribution to employment, job creation, and growth. World Bank Policy Research Working Paper 5631. World Bank. Washington, D.C.
Bogale, A., K.Hagedorn and B.Korf., (2005). Determinants of poverty in rural Ethiopia. Quarterly Journal of International Agriculture, 44.No 2:101-120.
Chen, K.M and T.M. Wang., (2015). Determinants of Poverty Status in Taiwan: A Multilevel Approach. Social Indicators Research, 123(2): 371-389.
Christiaensen, L and Y. Todo., (2014). Poverty Reduction during the Rural–Urban Transformation–The Role of the Missing Middle. World Development, 63(10): 43-58.
Demery, L and L. Squire., (1996). Macroeconomic Adjustment and Poverty in Africa: An emerging picture. World Bank research observer, 11(1):39-59.
Dewilde,C., (2008). Individual and Institutional Determinants of Multidimensional Poverty: A European Comparison. Social Indicators Research, 86(2):233-256.
Dudek. H and I. Lisicka., (2013). Determinants of Poverty- Binary Logit Model with Ineteraction Terms Approach. Econometrics, 3(41): 65-77.
Duranton, G and D. Puga., (2004). Micro-foundations of urban agglomeration economies, in Handbook of Urban and Regional Economics. J.V. Henderson and J. Thisse (Eds.4 ).
Fang, C and W. Dewen., (2003). Migration as Marketization: What Can We Learn from China’s 2000 Census Data? The China Review, 3(2): 73–93.
Gangopadhyay, P., (2014). Can there be Rural Development from Agglomeration Externalities and Household Efficiencies? Lessons from a field study in India. The Journal of Developing Areas, 48(3): 47-63.
Geda, A., N.D. Jong., M.S. Kimenyi and G. Mwabu., (2005). Determinants of Poverty in Kenya: A Household Level Analysis. Economics Working Papers Series 2005-44, January 2005.
Giang, L.T., C.V. Nguyen and T.Q. Tran., (2015). A linkage between Firm Agglomeration and Poverty Reduction: First Evidence in Vietnam. IPAG Business School, Working Paper 2015-617.
Gounder, R and Z. Xing., (2012). Impact of Education and Health on Poverty reduction: Monetary and Non-monetary Evidence from Fiji. Economic Modeling, 29(3):787–794.
Greene W.H., Econometric Analysis, Prentice Hall Inc., Upper Saddle River, New Jersey 2000.
Guedes,G.R,. E.S. Brondízio., A.F. Barbieri., R. Anne., R.P. Firme and A.O.D. Antona., (2012). Poverty and inequality in rural Brazilian Amozon: A Multidimensional Approach. Human Ecology, 40(1): 41-57.
Gustafsson, B and S. Li., (2004). Expenditures on Education and Health Care and Poverty in Rural China. China Economic Review, 15(3):292– 301.
Hashmi, A.A., M.H. Sial., M.H. Hashmi and T. Anwar., (2008). Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab [with Comments]. The Pakistan Development Review, 47(4): 909-923.
Henderson, J.V., (1988). Urban Development: Theory, Fact, and Illusion. Oxford University Press, Oxford.
Henderson, J. V., (2003). Marshall’s Scale Economies. Journal of Urban Economics, 53(1): 1-28.
Iqbal, A., Siddiqui, A., & Zafar, M. (2020). A geographically disaggregated analysis of multidimensional poverty in Punjab. International Journal of Social Economics, 47(3): 365-383.
Johnson, D.G., (2002). Can Agricultural Labour Adjustment Occur Primarily through Creation of Rural Non-farm Jobs in China? Urban Studies, 39(12): 2163-2174.
Lanjouw, J. O and P.F. Lanjouw., (1995), Rural Nonfarm Employment: A Survey. Policy Research Working Paper, 1(1463).
Martinez, J.V., P. Panudulkitti and A. TimofeeV., (2009). Urbanization and the Poverty Level. International Center for Public Policy Working Paper Series No. 0914, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
Ministry of Finance (2014). Pakistan Economic Survey, Government of Pakistan.
Mukherjee, S and T. Benson., (2003). The Determinants of Poverty in Malawi, 1998. World Development, 31(2): 339–358.
Nguyen, C., V. Linh and T. Nguyen., (2013). Urban Poverty in Vietnam: Determinants and Policy Implications. International Journal of Development Issues, 12(2): 110-139.
O’Sullivan, A., (2003). Urban Economics, 6th ed, McGraw-Hil, Irwin, Bostan MA.
Pakistan Bureau of Statistics. (Data retrived from) http://www.pbs.gov.pk/faq-pslm.
Partridge, M.D and D.S. Rickman., (2008). Distance from urban agglomeration economies and rural poverty. Journal of regional science, 48(2): 285-310.
Punjab Bureau of Statistics. Government of Punjab, Lahore, Pakistan (data retrieved from) http://www.bos.gop.pk/publicationreports?q=provincialreport
Sadeq, A.M. (1997). Poverty alleviation: an Islamic perspective, Humanomics, 13(3): 110-134.
Salahuddin,T and A. Zaman., (2012). Multidimensional Poverty Measurement in Pakistan: Time Series Trends and Breakdown. The Pakistan Development Review, 51(4): 493–504.
Shapiro, D and B.O. Tambashe., (2001). Gender, Poverty, Family structure, and Investments in children’s Education in Kinshasa, Congo. Economics of Education Review, 20(4):359–375.
Shete, M., (2010). Magnitude and Determinants of Rural Poverty in Zeghe Peninsula, Ethiopia. Journal of Poverty, 14 (3):308–328.
The World Bank, (data retrieved from) http://www.worldbank.org/en/country/pakistan.
Todaro, M.P and S.C. Smith., (2003). Economic Development, 8th ed, Addison Wesley, Boston, MA
Tsui, K.Y., (2002). Multidimensional Poverty Indices. Social choice and welfare, 19(1): 69-93.
Tuyen, T. Q., (2014). A Review on the link between Nonfarm Employment, Land and Rural livelihoods in Developing Countries and Vietnam. Economic Horizons, 16(2), 113-123.
Wu, F., D. Zhang and J. Zhang., (2008). Unequal education, Poverty and low growth—A theoretical framework for Rural education of China. Economics of Education Review, 27(3):308–318.
How to Cite
Dr. Asim Iqbal1,Dr. Ghulam Mustafa2,Dr. Rana Tahir Naveed3,Dr. Muhammad Usman4 Maryam Zafar5. (2020). SPILLOVER EFFECTS OF POPULATION AGGLOMERATION AND POVERTY REDUCTION IN PUNJAB. Epistemology, 7(3), 44-58. Retrieved from http://journal.epistemology.pk/index.php/epistemology/article/view/153