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Sustainable Agriculture and Rural Poverty Eradication in Pakistan: The Role of Foreign Aid and Government Policies

Author

Listed:
  • Furqan Sikandar

    (College of Economics and Management, Northeast Forestry University, Harbin 150040, China)

  • Vasilii Erokhin

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Li Xin

    (College of Economics and Management, Northeast Forestry University, Harbin 150040, China)

  • Marina Sidorova

    (Laboratory Anaplan, Faculty of International Economic Relations, Financial University under the Government of the Russian Federation, Moscow 125167, Russia)

  • Anna Ivolga

    (Faculty of Social and Cultural Service and Tourism, Stavropol State Agrarian University, Stavropol 355017, Russia)

  • Alexey Bobryshev

    (Faculty of Accounting and Finance, Stavropol State Agrarian University, Stavropol 355017, Russia)

Abstract

For decades, agriculture has been central to economic growth and development in Pakistan. However, endemic rural poverty hinders the performance of agricultural production, and thus deteriorates the sustainable development perspectives of the agricultural sector and the entire country. The need for agricultural reform emphasizes raising farmers’ incomes as a cornerstone of the sustainable development of rural areas, and this study attempts to reveal the effects of foreign aid and government policies on the level of rural poverty in Pakistan. In total, 384 farmers from major agricultural areas of Pakistan completed the survey-based questionnaire. The partial least square structural equation modelling technique tested the results. They, using sustainable agriculture practices, improved agricultural production positively and significantly. Agriculture production positively and significantly reduces or mitigates poverty. This study aimed to reveal the role of foreign aid in sustaining agricultural production and eradicating rural poverty. Foreign aid positively moderated the association between sustainable agriculture practices and agricultural production. In addition, government policies negatively, yet insignificantly, moderate the association between agriculture production and poverty reduction. Furthermore, the findings indicate that agriculture production positively and significantly mediates the association between sustainable agriculture practices and poverty reduction. The study contributes to the literature by improving the understanding of linkages within the poverty-policies-aid-sustainability framework.

Suggested Citation

  • Furqan Sikandar & Vasilii Erokhin & Li Xin & Marina Sidorova & Anna Ivolga & Alexey Bobryshev, 2022. "Sustainable Agriculture and Rural Poverty Eradication in Pakistan: The Role of Foreign Aid and Government Policies," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:14751-:d:967427
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    References listed on IDEAS

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    Cited by:

    1. Srijita Ghosh & Kausik Gupta, 2023. "Dynamic Analysis of Watershed Management and Sustainable Agriculture in Dryland Regions: A Case Study of Purulia District, West Bengal," Review of Development and Change, , vol. 28(2), pages 207-244, December.
    2. Yanyu Wang & Robert Tian, 2023. "Development of Rural Regions in China: Evidence of Industry Integration by the Residents of Yongan Village (Quanzhou City, China)," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    3. Ali Raza & Guangji Tong & Vasilii Erokhin & Alexey Bobryshev & Lyubov Chaykovskaya & Natalya Malinovskaya, 2023. "Sustaining Performance of Wheat–Rice Farms in Pakistan: The Effects of Financial Literacy and Financial Inclusion," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    4. Ali Raza & Guangji Tong & Furqan Sikandar & Vasilii Erokhin & Zhang Tong, 2023. "Financial Literacy and Credit Accessibility of Rice Farmers in Pakistan: Analysis for Central Punjab and Khyber Pakhtunkhwa Regions," Sustainability, MDPI, vol. 15(4), pages 1-24, February.

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