7th International Scientific Conference on Applied Sciences and Engineering 27-28 February, 2016 Flora Grand Hotel, Dubai

1. Abstract of Applied Sciences and Engineering, 2016, Vol.7
DOI: 10.18488/journal.1001/2016.7/1001.7
7th
International Scientific Conference on Applied
Sciences and Engineering
27-28 February, 2016
Flora Grand Hotel, Dubai
Conference Website: www.scihost.org
20
Paper ID: 832/16/ 7
th
ISCASE
Rural-Urban Household Saving Behavior: A Case Study of
District Chitral, Pakistan
Iftikhar Hussain1
Abstract
The main objective of the study is to find out the saving pattern between rural and
urban households of district Chitral in Province of Khyber Pakhtunkhwa, Pakistan.
Accordingly, household in the city of Chitral have been selected for urban analysis,
while rural analysis is conducted in a village of Drosh. Based on a random sampling,
100 respondents were selected from each urban and rural area. Analysis is conducted
on the effect of major socio-economic and demographic variables on savings of the
households. The results reveal that income, employment status and age had positive
effect on the households’ saving while dependency ratio, education of the
household head and marital status have negative effect on the households’ saving
in both the regions. Income of the household, education, and age are found statistically
significant in urban area while in rural area, income, dependency ratio, employment
status, and age were statistically significant. The marital status found insignificant for
both urban and rural communities. Household monthly income as assumed was found
on an average higher vis-Ã -vis rural areas. Similar trends were found on expenditure
side in both communities. The main rationale behind high expenditure is because of
relatively high cost of education in the urban area due to existence of private sector in
the delivery of social services. Dependency ratio is found greater in rural area vis-Ã -
vis urban area. Thus, average per month saving was higher in urban area as
compared to rural area.
Keywords: Household, Saving Behavior