Advanced Search
MyIDEAS: Login to save this article or follow this journal

An Empirical Investigation of the Relationship between Trade Liberalization and Poverty Reduction: A Case for Pakistan

Contents:

Author Info

  • Muhammad Shahbaz Akmal

    ()
    (Corresponding Author/Research Officer at Social Policy and Development Center, Karachi, Pakistan.)

  • Qazi Masood Ahmad

    ()
    (University of Karachi, Pakistan.)

  • Mohsin Hussain Ahmad

    ()
    (University of Karachi, Pakistan.)

  • Muhammad Sabihuddin Butt

    ()
    (University of Karachi, Pakistan.)

Abstract

In this paper, we have addressed a key issue in the current debate on economic development: the effect of trade liberalization on poverty. We investigated the relationship between trade liberalization and poverty levels both in the long run as well as in the short run for Pakistan. To measure trade liberalization, we used standard indices of trade openness, financial openness and public intervention in the country, while the head-count ratio was used for poverty measurement, and GDP per capita controlled for economic growth. Applying the Johansen Co-integration Techniques and Error Correction Method, for long-run and short-run analyses respectively, our findings suggest that trade liberalization has a cumulative effect on poverty reduction in the long-run but not in the short run in Pakistan. Lower poverty is associated with low taxation and high foreign direct investment, while trade openness does not have a significant impact on poverty reduction, particularly in the short run, in Pakistan.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://121.52.153.179/JOURNAL/V-12No1/05%20Shahbaz,%20Masood,%20Hussain%20and%20Sabihuddin.pdf
Download Restriction: no

Bibliographic Info

Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

Volume (Year): 12 (2007)
Issue (Month): 1 (Jan-Jun)
Pages: 99-118

as in new window
Handle: RePEc:lje:journl:v:12:y:2007:i:1:p:99-118

Contact details of provider:
Postal: Intersection Main Boulevard Phase VI DHA and Burki Road, Lahore
Phone: (92-42) 6560939
Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx
More information through EDIRC

Related research

Keywords: Trade; Liberalization; Poverty;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
  2. David Bevan, 1995. "Fiscal Implications of Trade Liberalization," IMF Working Papers 95/50, International Monetary Fund.
  3. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, December.
  4. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  5. Rod Falvey, 1994. "Revenue enhancing tariff reform," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 175-190, March.
  6. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  7. Lee, Jong-Wha, 1996. " Government Interventions and Productivity Growth," Journal of Economic Growth, Springer, vol. 1(3), pages 391-414, September.
  8. Reint Gropp & Liam P. Ebrill & Janet Gale Stotsky, 1999. "Revenue Implications of Trade Liberalization," IMF Occasional Papers 180, International Monetary Fund.
  9. Chakrabarti, Avik, 2001. "The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions," Kyklos, Wiley Blackwell, vol. 54(1), pages 89-113.
  10. By Gunnar Jonsson & Arvind Subramanian, 2001. "Dynamic Gains from Trade: Evidence from South Africa," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 8.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Muhammad, Shahbaz & Faridul, Islam & Muhammad Sabihuddin, Butt, 2011. "Devaluation and income inequality: Evidence from Pakistan," MPRA Paper 35522, University Library of Munich, Germany, revised 21 Dec 2011.
  2. Shahbaz, Muhammad & Islam, Faridul, 2011. "Financial development and income inequality in Pakistan: An application of ARDL approach," MPRA Paper 28222, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:lje:journl:v:12:y:2007:i:1:p:99-118. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shahid Salahuddin).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.