The Impact of Border Markets on the Sustainable Livelihood of Households Living in these Areas (Case Study: Milak Border Market, Sistan And Baluchestan Province)

Document Type : Research Paper

Authors

1 Postdoctoral Researcher, Department of Economics, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Zahedan, Iran.

2 Associate Professor, Department of Economics, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Zahedan, Iran.

Abstract

The primary objective of this research is to identify the impact of border markets on the sustainable livelihoods of households residing in these areas. This study is applied in nature, field-based in terms of variable control, and employs a descriptive-survey methodology. The statistical population includes households located both within and outside the areas influenced by border markets. Using an imputed random sampling method, 227 households were selected from the Milak border market region. Findings from the independent t-test indicate no statistically significant differences across any dimensions of sustainable livelihoods between households situated within the border market area and those outside it. In other words, the Milak border market does not appear to have a measurable impact on the sustainable livelihoods of households in its vicinity. Additionally, the livelihood stability ranking from the perspective of the surveyed community revealed the following distribution: 20.9% of households are in a very unstable situation, 38.8% are in an unstable situation, 14.9% are in a moderately stable situation, 16.4% are in a stable situation and Only 9% are in a very stable situation.
 
Extended Abstract
1-Introduction
 Although rural economies rely on both agricultural and non-agricultural production, village-level productivity is shaped by a complex interplay of natural, economic, geographical, social, financial, commercial, and industrial factors. In many developing countries, however, poor rural populations predominantly depend on small-scale agriculture and adopt limited agriculture-related livelihood strategies. Villages characterized by a single-crop economy and geographical isolation are particularly vulnerable to severe livelihood disruptions. To enhance the livelihood strategies of rural households, it is widely recommended to diversify the rural economy—expanding both agricultural and non-agricultural activities and introducing complementary income sources. Livelihood diversification is recognized as a key strategy for increasing village sustainability, with a positive correlation between livelihood diversity and economic resilience in rural areas. Among the various approaches to rural development, the Sustainable Livelihood Approach (SLA) has emerged as a contemporary analytical framework. In recent years, this approach has guided efforts to reduce poverty and vulnerability among rural households by emphasizing human-centered development. According to one of the most widely accepted definitions, a livelihood is considered sustainable when it can withstand and adapt to pressures and shocks, maintain or enhance its assets and capabilities, and provide opportunities for future generations—while also contributing net benefits to others at local or national levels over both the short and long term. Given the significance of this issue and the establishment of the Milak border market in Sistan and Baluchestan Province, this research investigates the impact of the Milak border market on the sustainable livelihoods of households residing in the surrounding areas.
 
2-Materials and Methods
This research is field-based in nature, with an applied purpose and a descriptive-survey methodology. The statistical population comprises households located both within the Milak border market area and in surrounding regions up to 20 kilometers beyond its boundaries. Using an imputed random sampling method, 227 households were selected from the Milak border market region. To assess the impact of the Milak border market on local livelihoods, cities and villages from three counties—Zahak, Hirmand, and Hamoon—were included in the study. Data were collected using a researcher-designed questionnaire grounded in the Sustainable Livelihoods Framework (DFID, 1999), ensuring alignment with established principles of livelihood analysis.
 
3- Results and Discussion
The results of the independent t-test indicated that there were no statistically significant differences across any dimensions of sustainable livelihoods between households residing within the Milak border market area and those living outside it. In other words, the Milak border market did not appear to have a meaningful impact on the sustainable livelihoods of households located within its vicinity. Additionally, the sustainable livelihood rankings, based on the perceptions of the surveyed community, revealed the following distribution: 20.9% of households were in a very unstable situation, 38.8% in an unstable situation, 14.9% in a moderately stable situation, 16.4% in a stable situation, and only 9% in a very stable situation. Based on these findings, it can be concluded that although border markets are established with the intention of improving the livelihoods of households in frontier regions, the evidence from the Milak border market does not support this objective.
 
4- Conclusion
Iran’s strategic geopolitical and geostrategic location—serving as a crossroads between South and Southeast Asia and acting as a bridge connecting the continents of Asia, Europe, and Africa—has long positioned the country to play a strong and constructive role in regional affairs. Its access to open waters also provides newly independent nations with vital trade routes, further enhancing Iran’s regional significance. One approach to fostering political and cultural ties with neighboring countries, while securing a share of their markets, is the establishment of border markets. These markets are part of broader initiatives aimed at improving the livelihoods of border-area residents by stimulating economic activity in frontier regions. A dynamic border economy is considered a key indicator of successful cross-border engagement and livelihood enhancement. Such economic cooperation allows residents of neighboring border regions to share resources and opportunities, promoting mutual understanding, friendship, and security. It can also lead to economic growth, job creation, and the development of comparative advantages in these areas. Trade exchanges and vibrant border economies play a critical role in advancing sustainable development, improving living standards, reducing poverty, ensuring equitable income distribution, and fostering closer relations and cooperation between border communities.  However, regarding the impact of the Milak border market on livelihood assets, the findings indicate no statistically significant differences in any dimensions of sustainable livelihoods between households located within the border market area and those outside it. In other words, the Milak border market has not demonstrated a measurable effect on the sustainable livelihoods of the households it was intended to benefit.
 
 
 

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Main Subjects


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