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Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan

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  • Rizwana Siddiqui

Abstract

Recently, gender-aware computable general equilibrium models (CGE) have been developed to analyse the impact of trade liberalization, with focus on a gender-disaggregated analysis of the production side of the economy. However, these studies ignore the gender-specific consumption effects due to the paucity of gender disaggregated data. We introduce intra-household allocation for the first time in a CGE-framework. The data is arranged in a gender-aware social accounting matrix, which reveals the hidden work of women (market and non-market). This study analyses the gender dimensions of the impact of economic reforms using three types of poverty indicators - FGT, capability, and relative time poverty - calculated on the basis of the simulation results. The study mainly found out that both trade liberalization and cuts in government expenditure are pro-rich. Within poor households, both policies hurt women more than men. Despite declines in absolute poverty in both exercises, the gender composition of the poor population changes in the majority of households. In the trade liberalization exercise, poverty among women relative to men increases in poor households and decreases among the rich, leading to an overall increase in the relative poverty of women in Pakistan. However, in the fiscal adjustment exercise, the incidence of poverty remains constant. In both exercises, time poverty among women relative to men increases in rural areas and decreases in urban areas, leading to an increase in relative poverty among women in Pakistan. The poverty of capabilities among men and women increases in a similar way after trade liberalization when measured by the infant mortality rate, but it affects women more negatively when measured by the literacy rate. Cuts in government expenditure also increase capability poverty among women more than men in both regions and in Pakistan as a whole. The study concludes that prosperity (increase in income), as well as education, can help reduce the gender gap as poverty decreases in relatively rich households, whether it is measured in monetary terms, capability terms, or in terms of time-use.

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Bibliographic Info

Paper provided by PEP-MPIA in its series Working Papers MPIA with number 2007-13.

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Date of creation: 2007
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Handle: RePEc:lvl:mpiacr:2007-13

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Keywords: Pakistan; Gender; CGE; Trade Policy; Public Policy; Time Allocation; Household Production and Intra-House Allocation; Poverty and Capability Development;

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References

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  1. Rehana Siddiqui & Rizwana Siddiqui, 1998. "A Decomposition of Male-Female Earnings Differentials," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 885-898.
  2. Channing Arndt & Finn Tarp, 2008. "Trade Policy Reform and the Missing Revenue †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(1), pages 131-160, January.
  3. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
  4. Howard White, 2005. "Child Poverty in Vietnam: Using Adult Equivalence Scales to Estimate Income-Poverty for Different Age Groups," Development and Comp Systems 0504016, EconWPA.
  5. Shannon Seitz & Jeremy Lise, 2005. "Consumption Inequality and Intra-Household Allocations," 2005 Meeting Papers 448, Society for Economic Dynamics.
  6. Siddiqui, Rizwana & Kemal, A.R., 2002. "Remittances, trade liberalisation, and poverty in Pakistan: The role of excluded variables in poverty change analysis," MPRA Paper 4228, University Library of Munich, Germany, revised Oct 2006.
  7. Haddad, Lawrence & Kanbur, Ravi, 1990. "How Serious Is the Neglect of Intra-Household Inequality?," Economic Journal, Royal Economic Society, vol. 100(402), pages 866-81, September.
  8. Siddiqui, Rizwana & Iqbal, Zafar, 1999. "TARIFF REDUCTION AND FUNCTIONAL INCOME DISTRIBUTION IN PAKISTAN: A CGE Analysis," MPRA Paper 6141, University Library of Munich, Germany.
  9. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
  10. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
  11. Fontana, Marzia & Wood, Adrian, 2000. "Modeling the Effects of Trade on Women, at Work and at Home," World Development, Elsevier, vol. 28(7), pages 1173-1190, July.
  12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  13. Rizwana Siddiqui & Zafar Iqbal, 2001. "Tariff Reduction and Functional Income Distribution in Pakistan: A CGE Model," MIMAP Technical Paper Series 2001:10, Pakistan Institute of Development Economics.
  14. Rehana Siddiqui & Rizwana Siddiqui & Zafar Iqbal, 1999. "The Impact of Tariff Reforms on Income Distribution in Pakistan: A CGE-based Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 789-804.
  15. John Cockburn & Bernard Decaluwe & Veronique Robichaud, 2007. "Trade liberalization and poverty - lessons from Asia and Africa," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic (ed.), FUTURE TRADE RESEARCH AREAS THAT MATTER TO DEVELOPING COUNTRY POLICYMAKERS, volume 61, chapter 4, pages 103-121 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  16. Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank.
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Citations

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Cited by:
  1. Maria Inés Terra & Marisa Bucheli & Carmen Estrades, 2008. "Trade Openness and Gender in Uruguay: a CGE Analysis," Working Papers MPIA 2008-16, PEP-MPIA.
  2. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
  3. Kebede, Sindu & Fekadu, Belay & Aredo, Dejene, 2011. "Trade Liberalization and Poverty: A Macro-Micro Analysis in Ethiopia," Proceedings of the German Development Economics Conference, Berlin 2011 44, Verein für Socialpolitik, Research Committee Development Economics.

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