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Effect of Non-Farm Income on Poverty and Income Inequality: Farm Households Evidence from Punjab Province Pakistan

Effect of Non-Farm Income on Poverty and Income Inequality: Farm Households Evidence from Punjab Province Pakistan

Muhammad Amjed Iqbal1*, Azhar Abbas1, Raza Ullah1, Umar Ijaz Ahmed2, Ali Sher3 and Shoaib Akhtar4 

1Institute of Agricultural and Resource Economics, University of Agriculture Faisalabad, Pakistan; 2Muhammad Nawaz Shareef University of Agriculture Multan, Pakistan; 3Nanjing Agriculture University, China; 4College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, Hubei Province, P.R. China.

amjadiqbal1775@yahoo.com  

ABSTRACT

Non-farm income is a major source of income along with farming for agricultural households. The present study is aimed at investigating the significance of non-farm income in farm household’s poverty and income inequality. Data were collected from 480 cotton growing respondents from six districts of Punjab province of Pakistan and Foster, Greer and Thorbecke (FGT) poverty index along with Gini coefficient were estimated to assess the impacts of non-farm income on household’s poverty and income inequality. The results indicated that non-farm income supports towards poverty reduction of households in the study area. However, it was observed that rise in non-farm income has slightly increased the income inequality among the selected households of Punjab Province. 

 

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Sarhad Journal of Agriculture

June

Vol. 35, Iss. 2, Pages 320-662

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