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Flow Structure in Nepal and the Benefit to the Poor

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  • Sanjaya Acharya

    ()
    (Hokkaido University)

Abstract

In this paper we use the latest Social Accounting Matrix (SAM) for Nepal and some complementary data to specify the concentration of the poor in this typical South Asian village economy. Applying SAM multipliers, we analyze the flow structure in Nepalese economy. On top of this analysis, we simulate the effects of demand injections to sectors and transfer injections to households and use Relative Distributive Measure introduced by Cohen (1988) to study the strengths of these multiplier effects with respect to their sectoral and household income shares. We conclude that in order to benefit the poorest household group most, economic restructuring is required because in the given flow structure the benefit to the poorest is only modest. Currently, even if the sectoral injections are through agriculture and transfer injections through poorer household groups, the middle income groups benefit the most.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 15 (2007)
Issue (Month): 17 ()
Pages: 1-14

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Handle: RePEc:ebl:ecbull:eb-07o10011

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Keywords: income expenditure flows;

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  1. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 89(356), pages 850-73, December.
  2. Roland-Holst, D.W. & Sancho, F., 1991. "Ralative Income Determination in the United States: A Social Accounting Perspective," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 188.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. Finn Tarp & David Roland-Holst & John Rand, 2002. "Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix," Economic Systems Research, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(2), pages 157-184.
  4. Llop, Maria & Manresa, Antonio, 2004. "Income distribution in a regional economy: a SAM model," Journal of Policy Modeling, Elsevier, Elsevier, vol. 26(6), pages 689-702, September.
  5. Andres Blancas, 2006. "Interinstitutional linkage analysis: a social accounting matrix multiplier approach for the Mexican economy," Economic Systems Research, Taylor & Francis Journals, Taylor & Francis Journals, vol. 18(1), pages 29-59.
  6. Thaiprasert, Nalitra, 2004. "Rethinking the Role of the Agricultural Sector in the Thai Economy and Its Income Distribution: A SAM Analysis," MPRA Paper 1055, University Library of Munich, Germany.
  7. Pyatt, Graham & Round, Jeffrey I, 1977. "Social Accounting Matrices for Development Planning," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 339-64, December.
  8. Pyatt, Graham, 1985. "Commodity Balances and National Accounts: A SAM Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 155-69, June.
  9. Maria Teresa Rubio Sanz & Juan Vicente Perdiz, 2003. "SAM multipliers and inequality measurement," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(7), pages 397-400.
  10. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 94(373), pages 111-36, March.
  11. Bjarne Madsen & Chris Jensen-butler, 2005. "Spatial accounting methods and the construction of spatial social accounting matrices," Economic Systems Research, Taylor & Francis Journals, Taylor & Francis Journals, vol. 17(2), pages 187-210.
  12. Stanica, Cristian, 2004. "MACROECONOMIC FORECASTING BASED ON A SAM MODEL OF THE ROMANIAN ECONOMY - Part I – Main Features of the Model," Journal for Economic Forecasting, Institute for Economic Forecasting, Institute for Economic Forecasting, vol. 1(1), pages 92-96, February.
  13. St-Hilaire, France & Whalley, John, 1983. "A Microconsistent Equilibrium Data Set for Canada for Use in Tax Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 29(2), pages 175-204, June.
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Cited by:
  1. Marcos Esaú Domínguez Viera, 2009. "Aplicación de un modelo de multiplicadores contables y de análisis estructural a políticas sociales seleccionadas en el estado de Nuevo León," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 95-137, November.
  2. John Gilbert & Nilanjan Banik, 2010. "Socioeconomic Impacts of Cross- Border Transport Infrastructure Development in South Asia," Development Economics Working Papers 21803, East Asian Bureau of Economic Research.

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