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Case Study: Global economic crisis and poverty in Pakistan

  • Vaqar Ahmed

    ()

    (Planning Commission of Pakistan;)

  • Cathal O’Donoghue

    ()

    (Rural Economy Research Centre (RERC), Teagasc, Ireland)

In this case study we adopt a macro-micro framework in order to evaluate the impact of the current global crisis on the Pakistan economy. We use a ‘top-down’ approach to combine a static computable general equilibrium model with a microsimulation model. Our results suggest that between 2007 and 2009 the poverty headcount ratio is likely to have increased by almost 80 percent, from 22 to 40 percentage points. However, our results also show that this increase is attributable in part to the fuel and food crisis that preceded the financial crisis. Our results also indicate a differential impact, with wage increases for farm workers and a decrease in wages for skilled labour.

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File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_36.pdf
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Article provided by International Microsimulation Association in its journal International Journal of Microsimulation.

Volume (Year): 3 (2010)
Issue (Month): 1 ()
Pages: 127-129

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Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:127-129
Contact details of provider: Web page: http://www.microsimulation.org/ijm/

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  1. Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology," Working Papers 482, Research Seminar in International Economics, University of Michigan.
  2. Paul Dorosh & Muhammad Khan Niazi & Hina Nazli, 2006. "A Social Accounting Matrix for Pakistan, 2001-02 : Methodology and Results," Finance Working Papers 22187, East Asian Bureau of Economic Research.
  3. Block, Steven A. & Kiess, Lynnda & Webb, Patrick & Kosen, Soewarta & Moench-Pfanner, Regina & Bloem, Martin W. & Peter Timmer, C., 2004. "Macro shocks and micro outcomes: child nutrition during Indonesia's crisis," Economics & Human Biology, Elsevier, vol. 2(1), pages 21-44, March.
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