Rising Cost Of Living In The Current Regime

go Cost Of Living In The Current governanceThe aim of this see is to investigate the existence of salary extend appeal of alert and examine the receipts of the residential bea against the salary affix comprise of animated in KPK Pakistan. The acclivity be of vivacious dilemma is non only dace by maven demesne. The study full(prenominal)lights the factors which enhance the acclivity greet of backing in KPK. These factors be Income direct, Price and existence. The primary date collected from the sextette districts of KPK Pakistan. The study targeted 150 respondents haphazardly for data collection. The six districts were Peshawar, Charsada, Mardan, Bannu, Noshehra and Kohat. Six hypotheses were demonstr equal to(p) which were time- foot raceed down the stairs one tail t-test. Findings exhibition that out of six cardinal null theory slumped and rest four consented. Because the respondents was non consent with statement of four hypothesis which was e stablish in study. The four hypotheses was approximately migration, multiple line of products, business line hopping and confederation members give preferences on the basic items on the luxurious items which were non accepted. The confederacy members do not leave their base town, not take interest in multiple speculate because they worn out(p) their time with their families, do not take interest transmission line hopping and company members be in undecided locating to give the preference to the amply items or not repayable to accessible location, and consider as status symbol because they feel that these luxurious items go daily keep practice. gateThe hail increase represent of life sentence is the well-know community dilemma around the adult male from go away 50 years (Church, 2011) Cost of sprightliness suggest that turn Smith believed in a minimum w ripen equal to twice what it would it be one working psyche to raise a family with dickens kids (Geo redd, 2010). The rising price of sustainment reminiscent of many new(prenominal) countries is test for the present Thai governings stability, particularly in the stir of policy-making katzenjammer in the Middle East and gigantic natural catastrophe passim many counties of the world (Leeahtam, Treesraptanagul, 2011). Since 1950, the rising cost of sustainment has massive rival on in the developed countries community like America, Japan, Europe, Australia and New Zealand, the community has stomaching enormous amount for a few basic goods (Bongaarts, 2004). The rising Cost of nourishment in the United States can vary depending on locality and standard of life-time. Immense cities like Los Angeles, New York and Chicago ar likely to induct towering costs of goods and services (Castro, 2009).The rising cost of vitality is the problem has go about by the African and South Asiatic countries .In South Asia the both(prenominal) factors which influence the living cost ar c onfusable to the west countries .like pretension, income, social status, expenditure. The factors which be not influence by the cost of living in the horse opera world hardly have the capacious impact on the Asiatic countries community like Pakistan, India, Bangladesh is the family size and social culture (Sothearith, Sovannarith, 2003). In Pakistan the cost of living is accelerating mode since partition only when inhabit two decade inflation number accelerated in double form. The inflation is the basic element and impressive impact of the rising cost living (Khan, SchimmelpfennIig, 2006).The households are veneer problem of paying juicy bells for necessary items like shelter, diet, clothes, electricity, gas water, and transport. Many households feels that legal injurys are raising excessively fast (Church, 2011). The living cost of community is escalating because the prices of basic products are sky-scraping. advance prices are equal to the inflation rising pric es would imply you have slight vitiateing power. come up cost of living call back as a persistent raise in the general price level, means is the rate at which the prices of goods are rising (Tahir.S, 2006). jibe to Qqyyum (2011) the rising cost of living was recognized by the Consumer Price Index which determines the average price of guest goods and services purchased by households. The rising cost of living are connected with rapid sudden thriftiness where the claim for goods and services is soaringer that the countrys world ability (Haq, Hussain, 2008). The central banks are the authority in the countries to constraint the inflation, with and finished and through supply of specie by rising or f apiece(prenominal)ing scam term interest rates. For instance, the European Central Bank decides to keep p.a. inflation rate under(a) 2% to encourage price resolve and appropriate festering. (Massod, 2011).The purpose of this study is to identify the community response ag ainst the rising cost of living in Khyber Pakhtunkhawa. This study will be accomplishing to travel to the causes of rising cost of living and responses of the community about the rising cost of living in Khyber Pakhtunkhaw. The rising cost of living problem has faced by the Khyber Pakhtunkhwa community. The factors that influence the rising cost of living are wobble in the Pakistan referable to culture difference as compare to the different countries in the world (Iqbal, 1994). This study examines the response of the community and gives the solution for go living standard.Literature ReviewThe literature shows that influence that cost of living are disturbed by the various factors. Like Inflation, Income, Size of family, Migration, and better(p) channel opportunities. First inflation impact. The cost of living affect by the inflation, the inflation is nothing more than than a sharp upward impulsion in the price level (R.P Cent 1996). Born verbalize (1996) alike more tha n money chasing too few goods. The sharp increase in goods and services prices over the past couple of years has raised knockout concerns about the sustenance and nutrition situation of poor wad in underdeveloped countries, about inflation, and in some countries about civil disturbances. Real prices are still be wretched their mid-1970s peak, alone they have reached their soaringest menstruum since that time. Both ontogeny and developed country governments have roles to play in bringing prices under control and in helping poor people (Braun, 2008).Khan et al, (2006) In Pakistan the inflation relatively low for quite a long time, the inflation rate accelerated in Pakistan late 2003 after the 1998-99 crises, inflation was cut back to below 5 per centum by 2000 and remained stable through 2003. blind drunk monetary policy joint with fiscal consolidation appears to have contri plainlyed to this low inflation environmentThe under develop countries have single digit inflation r ate indicates that these countries are on the road to emerged as developed country. chinaware, India, Brazil, Turkey, Russia and Bangladesh are the under develop countries, they have single digit inflation rate which suggest that they are moving towards as the developed country. Its mean the government have a stable monetary police in that location are not massive different between in the balances of payments and government have a sufficient reserve. In these countries there is political stability and equally opportunity available to every citizen of the country for employment. The prize of under develop countries currencies have rising gradually. Pakistan, Egypt, and Venezuela are the under develop countries only they have double digit inflation rate, that suggest the economy state of affairs is vice versa to the above mention under develop countries. (Masood, 2011)Secondly, the income influence the cost of living when the prices of consumer goods is rising the community is no t be able to buy it because of the income is not allowing him to buy it (Pochet, 1997 ). The income has impressive impact on the rising cost of living. In the the States people have a very high level of income the living cost is much better than the east countries that is wherefore people from all over the world desire to move into the country because of the very high salaries as well as the plenty of job opportunities. The community of the USA has the well income source as compare to the Asian countries. The USA is the richest and virtually dominant kingdom in the world. At present, it ranks initiatory in terms of economy and quality of life. The current GDP of the nation is over 13 trillion Euros with a per capita GDP of over 44,000 Euros (Castro, 2009). Haworth and Rasmussen in his study (1973) utter that uniform salary package is not reclaimable tool to decrease the cost of living.The income level in USA was declined know terzetto years payable to recession. harmonize to DeNavas, Proctor, Smith (2011) household income was $49,445 in 2010, 2.3 percent turn down from 2009. In 2007 when the recession hit the US economy, real income has declined 6.4 percent and is 7.1 percent income level was top in 1999. Family and nonfamily households income level turned down between 2009 and 2010. The income level of family households was turndown by 1.2 percent to $61,544 on average base the income of nonfamily households was turndown by 3.9 percent to $29,730. According to Africa Development Bank (2009) the income levels in Africa Seychelles has the maximum per capita income $ 8,180 in 2005. Egyptian per capital income was $ 1,260. The income level of former(a)(a) Africans countries was between $ 5,000 and $ 6,000. South Africa and Tunisia was per capita income levels of $4,700 and $ 2,800, for the very(prenominal) duration.Asian countries like Chain the per capita income of that soul who run households in 1995 was $735, but rosebush 24% in 2006.the middle(a ) family householder pre .capital income $1,300 to $2,400 that income the spend on necessary items (Dyck,Hansakul, Saxen 2009).Individual led his life accordance to price. The income always affect by the price whenever the price of consumer goods are rising the individual go through upon his income that his income permit him to buy the particular product. In America according Castro (2009) the prices of food items, clothing accessories are affordable due to vast variety in food and clothing. The consumer has the opinion to shift from one product to some other(prenominal) and the manacles products give them more space to the consumer. The housing cost is very high due to migration of the people in this part of the world.The high food prices dispose the poor and middle caste families to change the food consumption pattern, take down the poor families shift to less balance diet which is injurious for their health. According to Braun (2008) the families spend 50 to 60 percent of their income on the food items in US. In US the living cost of one person is $1of one day, if there is increase in the food prices 50% the per person living cost will be $1.50, and your family member are tail fin current budget of $5 are not sufficient to fore join the requirements of the family. Growing postcode cost is not taked in this and the proximo domestic budget.According Demeke, Pangrazio, Maetz (2009) the prices of rice vegetable and oil was increased from January to whitethorn 2008. The citizen of those countries which have a low per capital income and highly dependent on import, high import bills and high food prices was become big challenges for the country, specifically for those countries which have limited foreign exchange and high food uncertainty.The factors which increase the food prices and other consumer items, food consumption expansion, bad weather, low enthronisation, high oil price, low work activates and transport cost, under cultivation, weak dollar, and unsound activities and trade policies as well reason for high prices Demeke et al ,2009According Saif (2008) in Arab countries the food prices was skyrocketed in 2007 because most of the food products are import from other countries. In short run they have no opinion to control this situation. Oil producing countries can control the inflation in the food price because they have massive revenue, non-oil producing Arab countries have not yet any protrude to control this situation, these countries citizen are living below and just at destitution line.The price should be control through trade oriented, customer oriented, and manufacturer oriented strategy (Demeke et al, 2009). Develop agricultural sector through investment and market accessibility, training and educating farmers. Providing the basic facilities to the hobnailed citizen to prevent migration and expand agricultural agricultural sector. Grow the energy sector to reduce the cost of energy through different techni que generate energy through gratuity turbine. Bring more investor in food market in Arab countries (Saif, 2008).Wasti (2011) In Pakistan per capital income $1051 in 2011, there is increase in per capital income as compare to 2010 is 0.4%. But that increase is not sufficient because on the other side of picture the prices of basic items are going the sky scraping. According to Federal Bureau of Statistics the inflation rate is 13.9%.The appendix -2 related the prices of the consumer items on the average base. The tables are shown in the appendix which is related to the last one decade in all these tables the prices of each trade good are shown which substantial necessary for the community. These tables demonstrate price levels of each trade good are in the rising trend, therefore no decreasing trend in the price levels of the trade good so that is establish there is rising cost of living in Pakistan. The rising cost of living is increasing more sharp from last five years because price levels of the commodity are in a sky- scarping trend in the Pakistan (Economic survey 2010-11). triad, the cost of living also affected by the world /family size. When the family size/ are rapidly increasing, the look at of the family will be increase if one person validate the family it is baffling for him to fulfill the requirement of the family the living cost is increase rapidly, the rapid growth in population also increase prices due to too much demand for goods and services (Bongaarts, 2004). Cebula and Richard (1980) said that rising cost of living and population has positive relationship. Whenever increase in the population the price level of the commodity is also increase. The middle fall apart families of Asian are the fastest emergent population cluster in the world. In 2000 the middle soma families population of Asian countries was 1.4%of global population and 2.1% of global income, and should be increase in 2030 population would be 8.9% and income 7.7% of g lobal income (Dyck et al, 2009). Family growths of developing countries are much rapid than the family growth in developed countries.The Government of Pakistan announced that four persons in the family are the admirable for family and sound for the country because earner can support the family easily and the government can provide the opportunities to his race (Bongaarts, 2004). The dynamic increase in the Asian families size in the dynamic increase in the consumption of the families because every person of family wants basic necessary items for them so most of the family not be able to provide them like Pakistan, Indian, Bangladesh, Sri lank are those countries in which the families size is bigger than their income size (Dyck, et al 2009).According to gentlemans gentleman Bank and IMF(2005) the new generation of Asian countries like Pakistan, and Indian ever-changing their life style the know the income source are limited so we should do family planning because country like Pakis tan the economy situation is not very well so we should limited our family for our bright coming(prenominal). Ashford said in (2009) the population size of the country can be reduced through unintentional pregnancies, family planning, reduce the birth rate give the better and proficient education to the women and provide the opportunities for the job to increase the income level of the family and delay or possible action in the pregnancies.The responses of community against the rising cost of living, and the community fulfills their requirements through different channels like emigrate from one city to another do more than one job, better job opportunities (Felipe, 2009). The rise in the cost of living encourage the migration, migration within the countries and from one country to another country are occur due to rising cost of living within the country. Individuals and families migrate to the area where lot of opportunities to tally their obligations (Ahmad, Gulzar, 2007). Cas tro said in (2009) the people migrate to USA due to better economy and political stability in the country. There is rising living cost but there are lots of opportunities for the migrated peoples as compare in USA. China is the major provider of migrated labor due to this reason now in Chain there are storage of labor. Chinese polices makers have pick up the flow of migration to the other countries especially in these immigrant generally farmer are migrated to the other countries for the better living standard. There is decline in the production of agriculture sector of Chain (Brauw, Talyor, Rozella, 2001).Migration with in the country means agrestic citizen are migrate to urban areas which creates worse issuance, the extra burden on the cities which craft problems for the locals like increase in the prices of the communities, house rent, build the gap between the income level of the urban and rural households, and political turmoil (Yang, 1999) nigh time migration is not done by the rising cost of living. In Chain migration is occur due to their preeminent future because in the some rural area of chain is not well developed the health, children education, basic food items, electricity and many more is not available for the rural citizen so the migrate to the urban area or to the other countries (Yang, Salehi, Kats, Yau, Ashley, 2006).Migration last is not only the decision of one individual this is the decision of a whole family, that one person or full family migrate to the other region because whole family are facing the rising cost of living. The migrate for long time or short time to earn more and more money that their rest of families member spend better life and save money for future and border the obligation against the rising cost of living.(Brauw et al, 2001).Migration decision are mostly influenced by the income level and economy situation of the family and the country. When there is rising cost of living, the one earner income are not suffic ient to fulfill the need of the family so individual or family migrate for better living standard and fight with the rising cost of living (Kennan, Walker, 2003). The origin of mankind migration is the most significant factor to improve the economy and eminence of life of people in the country and outside the country. The people move to that region where privileged real income and control cost of living and fight with the rising cost of living through their respectable incomes (Ozgen, Nijkamp, Poot, 2009). Ahmad and Gulzar said if government makes the policy that minimum income level are same for all people in the country the people migrate those cities where cost of living is low and look on of income is high, means that there is decrease cost of living and migration in do more.In USA the mostly community members do multiple jobs due to high cost of living and the low income level. The individuals who include in doing multiple jobs are young bachelors and newly married couples, th e teenagers do part time jobs with their education (Castro, 2009). Ostrosky said in (1983) in USA the householders are not be proficient if they do single job thats why in USA the householders mostly do multiple jobs because cost of living so high. In middle class families of USA the children become adult they bear their own expensive due to rise in the cost of living. In Asian countries last three decades the multiple job trend are increasing day by day because the Asian countries are facing the same dilemma which was faced by the western countries the rising cost of living (Henderson, Vernon, Shalizi, Zmarak, Anthony, 2001).In Pakistan the price of basic commodity is raising and salary level is not increasing as the prices level are increasing, the community members are looking those channels in which the meet their requirement .the multiple jobs is the best option to increase the income level and meet the demand of the products price (Husain, Rashid, 2006). The most significant r eason for doing multiple jobs is the pay or salary level, salary is the only tool against the fighting with rising cost of living. When your weapon is empty or insufficient bullets in the weapon you cannot fight with your enemy. So fighting with the rising cost of living you moldiness possess handsome income level in this versa economy situation the community members do multiple jobs to achieve better life standard (Rehman, 2009).The community members have another opportunity to show resistant against the rising cost of living is the job hopping (Lee, Geraanart, Weller, Trevor, 2008). Rehman said (2009) the job hopping means the employees change their job for no reason just for fun they do job hopping. The mostly job hopping occur due to less opportunities in the present job the employee turn to that job where they have better future opportunities and where their future is deposit (Romero, Cruthirds, 2009). The job hopping are faced by every organization, if the organization are p aid incentive to the employees on the different events like rewards on the attention and bonuses the job hopping is not be eliminate because these feature are so ordinary they do not distinguish the organization and persuade the employees to tarry with them.(Miller, Hom, G-Mejia, 2001).The job hopping begin when employees feels that the present income level is not sufficient to tame the rising cost of living then he search for the other job opportunities to survive in the rising cost trend (Rynes, Gerhart Parks, 2004). explore HypothesisFollowing hypothesis is set to be evaluatedH1 The cost of living rise during the last three yearsH2 The calendar monthly expenses rise during the last three yearsH3 The community members migrate to another city due to rise in the cost of living.H4 The community members do multiple jobs due to rise in the cost of living.H5 The community members do job hopping due to rise in the cost of living.H6 The community members give preferences to the basic c ommodity items onluxuriously items due to rise in the cost of living.enquiry MethodologyThe sample chosen 150 responded for the comprehensive questionnaire from six district of Khyber Pakhtunkhwa. The criteria for selection of a respondent, the respondents run their families and must be job holder. The randomly selected 150 responded included government servants, doctors, businessmen, journalists, professors, bankers, and shopkeepers. The respondents belong to the different community of six district of Khyber Pakhtunkhwa. In this six disttrict include Peshawar, Charsada, Mardan, Bannu, Nowshehra, and KohatResults and AnalysisThe responses of the respondents are draw through questionnaire which are dispense among the selected 150 respondents. The questionnaire carries 19 questions and in this 19 questions hypothesis are include in the shape of question. The questionnaire cope withs the responses of the respondents and on these gather responses through questionnaire applied statisti cal tool like mean, standard exit, and variance. The statistical tools are calculated through SPSS 19 edition software leap out 2007. T one tail-test is utilise to acceptance and rejection of hypothesis, the t statistical value calculated through mean standard deviation and . The calculated t statistical value is more than +1.645 than accept the hypothesis and when less than -1.645 reject the hypothesis.The table-1 is computed through Microsoft Excel 2007 edition. The data is placed in the table is gather from the questionnaire. The table consists on items like Gander, Age, Income lay out, Save, Saving place, and Expenses concatenation the other split of table are respondents data and the responses in the form of portions.This table shows the response of KHYBER PAKHTUNKHWA community about their yearly activities related to the consumption of the income. Previously in the methodology 150 respondents are mention, to the know the responses of community for inquiry of Rising Co st of Living in the KHYBER PAKHTUNKHWA in the Current Regime, this table show the response.In table, 91% are males and 9% are females, in which 60% are married and 40% are unmarried respondents. In the age range section the 43% of respondents belongs to the age group of 20-30 which is the highest partition in the age group, rest off other age range have the respondents are 29%, 20%, and 9%. Income section is the most crucial section and tells that who much one respondent earn in the month. The 26% respondents are able to earn more than 42000Rs per month means 39 individuals or householders income of the month are more than 42000Rs which are the highest in the income section. In income section 23% of respondents earn income from 21000-28000Rs range between per month, which are the jiffy highest in the income section. The 6% of respondents income are less than 7000 per month, which show the poorer middle class families earning. The other income range groups belong to the lower middl e class, middle class, f number middle class, and high pep pill class. The 9% income earned in the month by lower middle class, the 17% income earned by the middle class families, 23% and 9% income are earned by the upper middle class. The 11% and 26% income are earned by the high upper class. Saving section in table66% of respondents are said that they are saved money for their future and 34% of the respondents are said no or hide their saving(a). The saving section raise divides in to saving range this research study that those respondents are said that we are not saved money for future but in saving range the mark on different options that the save money for future. The research examines those respondents which belongs to the high upper class and upper middle class means income level is high or earned more income in the month like more than 42000Rs, they marked on the high saving range like 9000 12000 and 12000 15000Rs. These both range have the highest response of the resp ondents, 9000 12000Rs range have 26% respondents save money for future which are the highest percentage of response of the respondents, and 12000 15000 range have the 11% respondents save money for their future benefits. The saving range less than 3000 having 23% responses of the respondents, which shows that the community have a very scare income level to save money and they are facing hand to mouth situation mostly are the poorer middle class and the lower middle class families. The other saving ranges has a same level of response of the respondents is 20%, this response belong to the middle class and upper middle class families.The expenses section of table shows, the respondents behavior towards their expenses of the community. The research shows the respondents utilization behavior the respondents spend their money on their food able items they spend 60% of their income on the food items. This research shows another point that those respondents having a high income level the expenses level of those respondents are high. In expenses range 20000 25000Rs are the range where 43% of respondents are lying which is the highest range in the expenses range section. The high upper class in the society not carries lot of peoples so in the research the respondents of that class are not so much selected, response of that class regarding expenses is low which is 29% against the expenses range of more than 25000Rs, means the respondents of that class is low the response is low.The table 2 computed through SPSS 19 edition and Microsoft Excel 2007. The SPSS computed hypotheses data and originate the result of 150 respondents. The SPSS evaluate Mean, ensample Deviation, and Variance of each hypothesis data, which further help to find out the t-statistical value.The Microsoft Excel 2007 is used to calculate t-statistical value for each hypotheses. The T- one tail test is applied on the each hypotheses which determine the t-statistical value, as earlier mention that me an, standard deviation, and variance is used to find out the t values. The t values calculate through this equation t= m-/S.D for each hypotheses. The table 2 provides the base for the pastime tables calculation. The following tables consist of H0 = and =3, number of hypothesis like H1, mean, standard deviation and total number of respondents which is 150. Microsoft Excel 2007 is used for the calculation of t-statistical values for each following table through this equationFirst hypothesis as stated above is the agreement of the cost of living has been rise during the last three years, the result show in table-1 our null hypothesis is =3 which finish off the neutrality of statement and place for the population mean but our alternative hypothesis 3 show that the respondents approach is towards agreement for the statement where our estimated mean is 4.01, Standard Deviation is1.277, number of observation is 150, and standard t-statistics is +1.660744 following handed-down t-test with the calculating machine = estimated mean population mean/ Standard deviation. Hence our t-statistics +1.660744 is more than tabulated value of t which is +1.645 under the 0.05 level of significance following one-tailed testing. therefore we accept H1 that cost of living has been rise during three years.Second hypothesis as mentioned above is the agreement of the monthly expenses rise during the last three years, The result show in table-2 our null hypothesis is =3 which clarify the neutrality of statement and set for the population mean but our tack hypothesis 3 show that the respondents approach is towards agreement for the statement where our estimated mean is 4.41, Standard Deviation is 1.414, number of observation is 150, and standard t-statistics is +1.780727 following traditional t-test with the estimator = estimated mean population mean/ Standard deviation. Hence our t-statistics +1.780727 is more than tabulated value of t which is +1.645 under the 0.05 level of s ignificance following one-tailed testing. Therefore we accept H2 that the monthly expenses raised during the last three years.The first two hypotheses H1 and H2 accept, so that indicates the community is facing the rising cost of living trend, the acceptance is load-bearing(a) the research.For H3H0 The community members do not job hopping due to high living cost.H3 The community members do job hopping due to high living cost.Third hypothesis declared above is the agreement of job hopping due to Rising Living Cost the result shows in the table-4 our null hypothesis is =3 which explain the neutrality of statement and place for the population mean but our switch hypothesis