This paper studies dynamic effects of agriculture trade in the context of domestic and global liberalisation. Being the largest sector of the economy, the agriculture sector contributes substantially to the growth process. Using a small CGE model for Pakistan and a 2002 Pakistan Social Accounting Matrix as data base, the simulations are conducted to measure the effects of domestic agriculture trade liberalisation in isolation and in conjunction with changes in the world economy. The novelty of this paper is that it introduces dynamics in the Pakistani CGE model through capital accumulation. The results illuminate the greater effectiveness of agriculture trade liberalisation in promoting the overall growth process, given increased market access because of liberalisation in the world economy.
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Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number
2007:38.
Length: 21 pages Date of creation: 2007 Date of revision: Handle: RePEc:pid:wpaper:2007:38
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Find related papers by JEL classification: O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity F15 - International Economics - - Trade - - - Economic Integration F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
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