The socio-economic fact The socio-economic factors of po ors of poverty: Empirical e ty: Empirical evidence fr vidence from district Lasbela, Balochistan

Abstract

This study examines the socio-economic factors of income poverty in five tehsils of the district Lasbela. The study used a sample consisting of 10003 households covering 200 villages in District Lasbela. Moreover, the study employed t-test statistics and a logit regression model to test the average income gap and the relationship between financial aid, household expenditure, dependency ratio, household size, and household heads education level. Our findings indicate that on average, 70% of households are poor or near the poverty line, earning an average of 1.9 dollars per day, whereas 25% of households fall below the poverty line (extreme poor). The results also demonstrate a significant gap in average income levels across the households of Tehsil Dureji, Hub, Sonmiani, and Uthal. Furthermore, the empirical findings show that socioeconomic factors such as dependency ratio and household size have an adverse impact on poverty across tehsils, whereas household head education, expenditure, and financial aid have a positive impact on poverty reduction across all tehsils. Furthermore, it concludes that the socioeconomic factors of income poverty in the district of Lasbela are similar in nature and situation in all tehsils and that income poverty is the primary cause of poverty in the district of Lasbela. Tehsil Dureji is the most impoverished, followed by Bela, Uthal, Sonmiani, and Hub. Some lucrative measures are suggested in connection to poverty reduction, such as access to free and accessible quality education in rural areas; construction of roads and small dams; implementation of public-private-partnership (PPP). Arrangement of technological, digital, vocational, modern education and easy access to loans and maximum coverage of financial aids.