Advanced Search
MyIDEAS: Login

Trade Liberalisation Could Improve Producers Profitability in Agriculture: A Case of Basmati Rice

Contents:

Author Info

  • Muhammad Zulfiqar

    (Kohat University of Science and Technology, Kohat)

  • Dilawar Khan

    (Kohat University of Science and Technology, Kohat)

  • Anwar F. Chishti

    (Muhammad Ali Jinnah University, Islamabad)

  • Munir Khan

    (NWFP Agricultural University, Peshawar)

  • Wasiullah

    (Kohat University of Science and Technology, Kohat)

  • Ajmal Waheed

    (Quaid-i-Azam University, Islamabad)

  • Muhammad Zakir

    (Kohat University of Science and Technology, Kohat)

  • Robina Karim

    (NWFP Agricultural University, Peshawar)

Registered author(s):

    Abstract

    This peace of research has been conducted, as part of PhD research of the first author, with the objectives to (i) identify various protection policies and interventions exercised in Basmati rice economy in Pakistan (ii) estimate welfare effects associated with existing protection policies and (iii) to estimate implications of WTO’s trade liberalisation in domestic economy and foreign markets. The quantitative analysis of data reveals that Basmati rice crop hanged about ‘price tax-cum-export tax’ regime during the study period. Welfare analysis of such policy interventions estimated higher losses to producers (Pak Rs 657.95 million per year) than gains to consumers (Rs 448.76 million per year) during pre-WTO period. The same trend continued during post-WTO period but producers’ losses were comparatively smaller i.e., 649.48 million per year. In case of free trade, simulation results demonstrate greater gains to producers than losses to consumers. If world market was liberalised, supplementary gains in the range of Rs 276.65 million to Rs 451.60 million per year during earlier and Rs 333.45 million to Rs 637.40 million per year during the later period would have occurred at domestic level. In light of analytical results, the following recommendations are made. (i) Government needs to curtail interventions in Basmati rice economy. (ii) Besides, improving the pace of trade liberalisation at domestic level, Pakistan should pursue with other members in WTO’s negotiations for early implementation of WTO’s trade liberalisation on international level. (iii) Government of Pakistan should gear up its efforts as facilitator of trade in accordance with WTO agreements and increase investment in areas of research, development, and out-reach.

    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://www.pide.org.pk/pdf/PDR/2009/Volume4/771-782.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 48 (2009)
    Issue (Month): 4 ()
    Pages: 771–782

    as in new window
    Handle: RePEc:pid:journl:v:48:y:2009:i:4:p:771-782

    Contact details of provider:
    Postal: P.O.Box 1091, Islamabad-44000
    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Email:
    Web page: http://www.pide.org.pk
    More information through EDIRC

    Related research

    Keywords: Basmati Rice; Government Intervention; Welfare Effect; Trade Liberalisation; WTO;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    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:pid:journl:v:48:y:2009:i:4:p:771-782. 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: (Khurram Iqbal).

    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.