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Determinants of Poverty in Rural Khyber Pakhtunkhwa Pakistan: A Logistic Regression Analysis

. Sanna Manan, Irfan Ullah, Khurram Nawaz Saddozai, Syed Attaullah Shah, Harun Uçak and Mahnoor Amir


Abstract

Poverty can be defined as a state where the resources available to sustain the basic personnel’s needs are so low that there is a lack of food, clothing, and shelter. This study is carried out to study important determinants of poverty in rural areas of Khyber-Pakhtunkhwa, Pakistan. For this purpose, data were collected from 187 respondents through a multistage sampling technique. The World Bank's $1.90 (Rs. 9986.4) per day per capita threshold level was used to classify respondents as either above or below the poverty line in the study area. Results of the logistic regression show that four out of the six variables (employment, family size, livestock, and farmland) had a statistically significant impact on poverty. Employment showed an indirect and highly significant relationship with poverty status. Likewise, family size is also statistically significant but has a negative effect on poverty. The livestock and farmland coefficients are significant and are inversely related to poverty. Based on the findings of the study, it is recommended that livestock keepers be given opportunities to get training in livestock management and marketing, which will result in a higher income. Also, demand-led activities on farmland and result-based skills and training are needed for the labour force to enhance productivity, and thus they may get out of poverty.  

Keywords: Poverty Status, determinants, rural area, logistic model, Khyber Pakhtunkhwa, Pakistan   

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