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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.

Suggested Citation

  • Sanjaya Acharya, 2007. "Flow Structure in Nepal and the Benefit to the Poor," Economics Bulletin, AccessEcon, vol. 15(17), pages 1-14.
    • Handle: RePEc:ebl:ecbull:eb-07o10011
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    Cited by:

    1. John Gilbert, 2008. "Trade Policy, Poverty, and Income Distribution in CGE Models: An Application to SAFTA," Working Papers 2008-02, Utah State University, Department of Economics, revised 19 Dec 2008.
    2. John Gilbert & Nilanjan Banik, 2012. "Socio-economic impacts of regional transport infrastructure in South Asia," Chapters, in: Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), Infrastructure for Asian Connectivity, chapter 5, pages 139-163, Edward Elgar Publishing.
    3. 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.
    4. Gilbert, John & Banik, Nilanjan, 2010. "Socioeconomic Impacts of Cross-Border Transport Infrastructure Development in South Asia," ADBI Working Papers 211, Asian Development Bank Institute.
    5. Acharya Sanjaya & Signorelli Marcello & Vojinovic Borut & Oplotnik Žan Jan, 2013. "Alternative Approach to Economic Restructuring to Benefit the Poor – Sam Multipliers Analysis as Alternative Approach," Scientific Annals of Economics and Business, Sciendo, vol. 60(1), pages 182-201, July.
    6. Leeuwen, E.S. van & Nijkamp, P., 2009. "Social Accounting Matrices; The development and application of SAMs at the local level," Serie Research Memoranda 0045, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Acharya, Sanjaya, 2011. "Making unilateral trade liberalisation beneficial to the poor," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 60-71, June.
    8. Maria Sassi, 2023. "Economic Connectiveness and Pro-Poor Growth in Sub-Saharan Africa: The Role of Agriculture," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    9. Valeria Ferreira & Miguel Ángel Almazán-Gómez & Victor Nechifor & Emanuele Ferrari, 2022. "The role of the agricultural sector in Ghanaian development: a multiregional SAM-based analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-27, December.

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    More about this item

    Keywords

    income expenditure flows;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models

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