Title: Globalisation and urban-rural consumption disparity nexus in Pakistan: a provincial perspective

Authors: Jabbar Ul-Haq; Asrorzoda Ubaidullo Sattor; Hubert Visas; Sadriddinov Manuchehr Islomiddinovich; Kainat Hameed

Addresses: Department of Economics, University of Sargodha, Sargodha, 40100, Pakistan ' International University of Tourism and Entrepreneurship of Tajikistan, Dushanbe, 734055, Tajikistan ' School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China ' Junior Academy of Sciences of Tajikistan under National Academy of Sciences of Tajikistan, Dushanbe, 734025, Tajikistan ' Department of Economics, Government Graduate College for Women, Mandi Bahauddin, 50400, Pakistan

Abstract: In the current academic literature, it is rare to find a Pakistan-specific study that explores regional disparity through the lens of globalisation. This paper examines the effects of Globalisation on regional disparity in consumption using micro-level data from Pakistan. As Consumption expenditure is regarded as a more direct and precise indicator of long-term earning ability than current income, it is used in this study as a measure of regional disparity. We investigate the regional variations in the effectiveness of trade policies that aim to reduce import tariffs. The results show that trade liberalisation and regional disparity in consumption are associated. In this country-specific study, globalisation widens the gap between urban-rural consumption expenditures. Regions more exposed to globalisation have higher levels of consumption inequality. Empirically lagged trade policy and regional disparity are also correlated. Our results are robust after incorporating other geographical control variables. The government should focus on a policy that reduces the urban-rural education gap, improves the skills by training rural migrant workers, and accelerates urbanisation policy to achieve a sustainable reduction in urban-rural disparities.

Keywords: regional disparity; globalisation; regional analysis; urbanisation; educational disparity; family income; Pakistan.

DOI: 10.1504/IJTGM.2025.151474

International Journal of Trade and Global Markets, 2025 Vol.21 No.6, pp.651 - 671

Received: 21 Feb 2025
Accepted: 29 Mar 2025
Published online: 02 Feb 2026 *

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