Rural-Urban Saving Differentials in Pakistan: Investigation from Primary Data

The present study examines rural-urban saving differentials in Multan district of Pakistan. For the purpose, primary cross sectional data were collected by the authors from district Multan. 113 respondents from urban areas and 180 from rural areas are randomly interviewed. Study interprets results at two stages, first at preliminary level using Mean and Standard deviation. At second stage, estimates are calculated using multivariate regression analysis. Results suggest that rural households are less likely to save due to children’s educational expenditures, family size, value of house and liabilities to be paid. While, spouse participation, total dependency rate, total income of households and size of landholdings are the factors that enhance saving level of rural households. The findings of this study indicate that urban household savings increase due to age of household heads, total income of households, and size of landholdings. Urban savings appeared to be negatively affected by children’s educational expenditures and liabilities to be paid by household head. Finally, study suggests that there is a need to lay more emphasis on industrial development and well-reputed educational institutions in rural areas.