Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan

Abstract Knowing whether poverty rates converge within a country matters for regional development policy and for understanding growth processes. In this paper, we use five poverty measures, calculated biennially from 2004 to 2014 for 100 districts in Pakistan, to test for poverty convergence. Spatia...

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Main Authors: Zaira Najam, John Gibson
Format: Article
Language:English
Published: Wiley 2022-09-01
Series:Asia & the Pacific Policy Studies
Subjects:
Online Access:https://doi.org/10.1002/app5.369
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author Zaira Najam
John Gibson
author_facet Zaira Najam
John Gibson
author_sort Zaira Najam
collection DOAJ
description Abstract Knowing whether poverty rates converge within a country matters for regional development policy and for understanding growth processes. In this paper, we use five poverty measures, calculated biennially from 2004 to 2014 for 100 districts in Pakistan, to test for poverty convergence. Spatial autoregressive models are used to capture spatial spillovers. Conventional money‐metric poverty measures, such as the headcount index and poverty gap index, show unconditional convergence, and the convergence is more apparent if indirect impacts from spillovers are accounted for. In contrast, two multidimensional poverty indices show no convergence and no indirect impacts from spatial spillovers. Catch‐up growth in initially poorer areas is apparent with the money‐metric poverty measures traditionally used in Pakistan but not with the types of multidimensional poverty measures used officially since 2015. This difference in apparent poverty convergence could affect regional development policy choices.
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spelling doaj.art-ced38db328604cf2a80ae2dc61ec1a4b2022-12-22T03:52:27ZengWileyAsia & the Pacific Policy Studies2050-26802022-09-019351653510.1002/app5.369Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from PakistanZaira Najam0John Gibson1School of Accounting, Finance and Economics University of Waikato Hamilton New ZealandSchool of Accounting, Finance and Economics University of Waikato Hamilton New ZealandAbstract Knowing whether poverty rates converge within a country matters for regional development policy and for understanding growth processes. In this paper, we use five poverty measures, calculated biennially from 2004 to 2014 for 100 districts in Pakistan, to test for poverty convergence. Spatial autoregressive models are used to capture spatial spillovers. Conventional money‐metric poverty measures, such as the headcount index and poverty gap index, show unconditional convergence, and the convergence is more apparent if indirect impacts from spillovers are accounted for. In contrast, two multidimensional poverty indices show no convergence and no indirect impacts from spatial spillovers. Catch‐up growth in initially poorer areas is apparent with the money‐metric poverty measures traditionally used in Pakistan but not with the types of multidimensional poverty measures used officially since 2015. This difference in apparent poverty convergence could affect regional development policy choices.https://doi.org/10.1002/app5.369convergencemultidimensionalPakistanpovertyspatial spillovers
spellingShingle Zaira Najam
John Gibson
Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
Asia & the Pacific Policy Studies
convergence
multidimensional
Pakistan
poverty
spatial spillovers
title Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
title_full Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
title_fullStr Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
title_full_unstemmed Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
title_short Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan
title_sort does intra country poverty convergence depend on spatial spillovers and the type of poverty measure evidence from pakistan
topic convergence
multidimensional
Pakistan
poverty
spatial spillovers
url https://doi.org/10.1002/app5.369
work_keys_str_mv AT zairanajam doesintracountrypovertyconvergencedependonspatialspilloversandthetypeofpovertymeasureevidencefrompakistan
AT johngibson doesintracountrypovertyconvergencedependonspatialspilloversandthetypeofpovertymeasureevidencefrompakistan