Urbanisation, Local Food Crop Production and Tourism Output of Pakistan
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Urbanisation, local food crop production and tourism output of Pakistan Suwastika Naidu , Atishwar Pandaram and Anand Chand 1. Introduction (Khalil et al. 2007). On the other hand, there will be an economic trade-off between infrastructure Similar to the economic context of many development and local crop production if land large developing countries, the tourism sector resources are devoted to farming practices with of Pakistan plays a key the goal of maximising local role in its economic develop- produce for the travel and Dr. Suwastika Naidu is a senior lecturer ment activities (Adnan et al. in the School of Management and Pub- tourism industry. Undoubt- 2013). It provides both direct lic Administration, University of the South edly it is crucial for policy- and indirect benefits to the Pacific, Suva Fiji Islands. makers to know the right national economy of Pakistan, Email: [email protected] mix of infrastructure develop- including job creation, con- Dr. Atishwar Pandaram is a lecturer in the ment and local food crop pro- School of Management and Public Adminis- tribution to government tax tration, University of the South Pacific, Suva duction that may be needed revenue, infrastructure devel- Fiji Islands. to maximise the growth of opment, and poverty reduc- Email: [email protected] the travel and tourism indus- tion. In 2014, the tourism Professor Anand Chand is the Head of the try (Khalil et al. 2007). and travel industry of Pak- School of Management and Public Admin- Furthermore, urbanisation is istration in Facility of Business and Eco- istan contributed 2.9 per cent nomics at the University of the South Pacific, another factor that may con- of the gross domestic product Fiji. He has a Master’s degree from Manch- strain infrastructure develop- (Khalil et al. 2007). Accord- ester University and a PhD from Cardiff Uni- ment for tourism purposes. ingtotheWorldTraveland versity, UK. His area of expertise is HRM The rapid increase in urban Tourism Council (2015), it and Employment Relations. His area of population leads to urban expertise is HRM, Employment Relations, is expected that the travel Industrial Relations. Anand has published sprawl that consumes urban and tourism industry of Pak- 2 books, 2 monographs and more than 60 resources that could be allo- istan will provide employ- articles in highly in ranked journals. cated to tourism infrastruc- ment for 1.76 million peo- Email: [email protected] ture development (Interna- ple in the coming decade. tional Growth Centre, 2019; Moreover, there are a number of reasons why Qureshi and Lu 2007). Alternatively, urbanisation tourists visit Pakistan. One of these reasons is to can also have a positive impact on Pakistan’s travel experience the authentic food and culture of the and tourism industry by increasing the supply of Pakistani people. On one hand, it can be argued that tourism goods in the urban areas. As the number the growth of the tourism industry is guaranteed of people residing in urban areas increases, there if efforts are made by stakeholders in the industry is evidently a high likelihood of an increase in to work with local communities and farmers who economic activity and production. Against this produce local and authentic goods and services backdrop, the main aim of this paper is to examine ISSJ 0 C 2019 John Wiley & Sons Ltd 2 Suwastika Naidu, Atishwar Pandaram and Anand Chand the relationship between urbanisation, local food This paper is divided into five sections. Sec- crop production and the tourism output of Pakistan. tion 2 outlines the theoretical framework and The above discussion indicates that due to reviews the literature. Section 3 outlines the data the growth of the global tourism industry, the and model specification. Section 4 presents the mobility of people across international borders research findings and section 5 discusses the has significantly increased. There are two reasons research findings and concludes this paper. why understanding the conceptualisation of the relationship between urbanisation, local food crop 2. Theoretical orientations production and tourism output needs to be explored and literature review in detail. First, tourism plays an important role in the economic development of Pakistan. It is extremely Understanding the different forms of urbanisation is important for policy-makers to understand how complex, as it involves understanding the direction changes in urbanisation and local food crop pro- and shift of people in an economy. Innovation duction will affect the tourism output of Pakistan. and rapid technological progress have given rise Policy-makers undoubtedly have to strategise for to different types of industries that did not exist the sustainable development of the tourism industry in the 1900s (Borras´ 2019; Naidu 2016). As an and one of the key components of strategising is exemplar, modern studies are examining the growth to determine the impact of the wider economic of semi-urban centres and the drivers of growth variables on the tourism output of Pakistan. Second, of these semi-urban centres. The main issue of the theoretical orientations proposed in this study contention in this paper is how we can establish a explicitly state that changes in the tourism output relationship between urbanisation, local food crop of a nation can be effectively explained by changes production and tourism output. Some of the theoret- in urbanisation and local food crop production. ical economic models used in the existing literature Arshad et al. (2017) and Qureshi et al. (2017) to explain the relationship between urbanisation, have used economic theory to explain the research economic growth, inflation and tourism output questions proposed in their studies. Drawing on are the Harris and Todaro model and the Cobb their studies, this study also undertakes a similar Douglas production function (Cobb and Douglas approach and emphasises that the Cobb-Douglas 1928; Harris and Todaro 1970; Naidu 2017; Naidu production function can be easily used to determine et al. 2017). Following the study conducted by the relationship between urbanisation, local food Bloom et al. (2010), this paper recognises that the crop production and tourism output. ratio of urban population to the rural population is This study needs to be conducted for two given as follows: reasons. First, to the best of our understanding, PU none of the existing studies have examined the URP = (1) relationship between urbanisation, local food crop PR production and tourism output of Pakistan. There In equation (1), URP is the ratio of urban are numerous qualitative studies conducted on these population to the rural population. Drawing from issues, but none of the existing studies have used the formula given in equation (1), urbanisation is robust empirical estimation techniques to explore the ratio of the population concentrated in the urban the relationship between urbanisation, local food areas to the total population. Total population is crop production and tourism output of Pakistan. the sum of the population in the urban and rural This study seeks to expand the existing litera- areas. The formula for urbanisation is provided in ture by exploring this relationship. Second, this equation (2): study provides an essential theoretical platform for PU examining the relationship between urbanisation, U = + (2) local food crop production and tourism output of PR PU Pakistan. The use of the indifference curve argues In equation (2), U is the measure of urbanisa- that there will be a trade-off between the local food tion, and PU is the population in the urban areas. crop production and urbanisation, and this premise The measure of the total population is obtained by is examined and discussed in the research findings adding PR and PU. Following the studies conducted section. by Harris and Todaro (1970), Cobb and Douglas C 2019 John Wiley & Sons Ltd Urbanisation, local food crop production and tourism output of Pakistan 3 question proposed in this paper. Agriculture has been one of the backbone of Pakistan’s economy since British rule, and it has continued to be one of the important contributors to the economic growth of Pakistan (Yameen 2019). The green revolution of the 1960s led to a major change in the way agricultural production is managed and agriculture output is produced in Pakistan (Abbas et al. 2016; Ahmad et al, 2004). With the introduction of hybrid seeds, advanced technology, and capacity building of the farmers, a significant increase in the yields FIGURE 1. Indifference curve [Colour figure can be viewed at wileyonlinelibrary.com] was noticed, but this growth in yield could not Source: developed by the authors, using information from be sustained for a long period of time due to Mankiw (2012). poor government policies and unequal ownership of land. Mughal (2018) argued that rural urbanisation (1928), Naidu et al. (2017), and Naidu (2017), this is increasing in the Pakistani Punjab, with a number study utilises the Cobb Douglas function to examine of farmers abandoning agriculture and adopting the relationship between urbanisation, local food lucrative occupations that would provide them with crop production and tourism output. The basic form stable cash flows. of the Cobb-Douglas function is given as follows Lahore is one of the largest cities in Pakistan (Cracolici et al. 2006; Holzner, 2011): and is home to historical monuments, trade, and commerce (Rana and Bhatti 2018). This city is α β y = x z α + β = 1(3)growing at a tremendous rate, with recent statistics estimating that it has doubled in size, and it is In equation (3), y is output, x and z represent predicted that it will continue to grow. Two of the α two goods that are produced in the economy, and factors that have led to this increase are massive β and represent the elasticity’s of good x and z. The growth in the infrastructure and squatter settlements functional form of the variables used in this study (Rana and Bhatti 2018).