Do Poverty and Income Inequality Mediate the Association Between Agricultural Land Inequality and Human Development?

Present study explores the association between agricultural land inequality and human development by investigating the mediating role of poverty and income inequality. For this purpose, agriculture land inequality, poverty, income inequality and Human Development Index have been calculated for districts of Punjab (Pakistan) by utilizing the panel data from different waves of Multiple Indicator Cluster Survey and Pakistan Social and Living Standards Measurement Survey conducted during the period of 2003–2014. By employing panel Ordinary Least Square, Fixed and Random Effects approach, we have found that agricultural land inequality is negatively associated with human development. Moreover, estimates of panel Two Stage Least Square and Generalized Method of Moments confirm the mediating role of poverty and income inequality in the relationship between agricultural land inequality and human development. Agricultural land inequality is detrimental for human development by generating poverty and income inequality. Redistribution of agricultural land through different strategies like agricultural land reforms can be useful to reduce poverty and income inequality and to bring improvements in human development particularly in developing countries like Pakistan.