Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 19/07/2017
Author Munazah Nazeer
Published By Applied Economics Research Centre (AERC), Karachi.
Edited By Saba Bilquis
Uncategorized

RELATIVE ATTRACTION OF CITIES AND INTER-CITY MIGRATION IN PAKISTAN

The study provides both descriptive as well as regression analysis explaining the relative dominance of one city over another, to attract migrants from other cities. The empirical analysis reveals that the relative size of the informal sector in a city and the magnitude of the flow of foreign direct investment towards these cities foster in-migration. Empirical assessment is based on two estimation techniques, the generalized method of moments (GMM) and Tobit regression. The techniques examine migration patterns across 14 major cities focusing over a time period of 7 years (2005-06 to 2012-13). It is found that the labor market variables (expected wages, employment, and unemployment rate) and regional economic contribution have a strong significant influence on inter-city migration flows. Distance, as suggested by the gravity model, and years of education, reflect human capital, and have a positive significant impact on migration flows across cities.

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