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The Impact of Structural Adjustment on Income Distribution in Pakistan A SAM-based Analysis

  • Zafar Iqbal

    (Pakistan Institute of Development Economics, Islamabad.)

  • Rizwana Siddiqui

    (Pakistan Institute of Development Economics, Islamabad.)

Domestic poverty and income distribution are closely related to the state of the economy, which is linked with internal and external economic policies. Since 1988, under the rubric of structural adjustment programme (SAP), Pakistan has made use of fiscal, monetary and trade policies to correct her macro economic imbalances. It is hard to substantiate with proof that these programmes protect the poor. A number of studies have found that income distribution has been getting worse during the adjustment period in Pakistan.1 For example, Kemal (1994); Jaffery and Khattak (1995) and Anwar (1996) found that SAP accompanied with rising income inequality and poverty in Pakistan. But these studies are restricted as they did not employ an adequate methodology to assess the impact of structural adjustment reforms on income distribution.2 This paper, however, uses a simple static fixed-price SAM-based framework to analyse distributional outcome of incomes for rural and urban households. This methodology is useful because social accounting matrix (SAM) represents the whole economy and it does not need a large data set.

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File URL: http://www.pide.org.pk/pdf/PDR/1998/Volume4/377-397.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 37 (1998)
Issue (Month): 4 ()
Pages: 377-397

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Handle: RePEc:pid:journl:v:37:y:1998:i:4:p:377-397
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  1. James, M.J. & Khan, H.A., 1993. "The employment effects of an income redistribution in developing countries," Other publications TiSEM 4d5f3f30-82ec-4939-8341-1, Tilburg University, School of Economics and Management.
  2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  3. Becker, Gary S & Murphy, Kevin M & Tamura, Robert, 1990. "Human Capital, Fertility, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S12-37, October.
  4. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  5. repec:ner:tilbur:urn:nbn:nl:ui:12-73593 is not listed on IDEAS
  6. Robert J. Barro, 1989. "A Cross-Country Study of Growth, Saving, and Government," NBER Working Papers 2855, National Bureau of Economic Research, Inc.
  7. Pyatt, Graham & Round, Jeffrey I, 1977. "Social Accounting Matrices for Development Planning," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 339-64, December.
  8. A.R. Kemal, 1994. "Structural Adjustment, Employment, Income Distribution and Poverty," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 901-914.
  9. Tilat Anwar, 1996. "Structural Adjustment and Poverty: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 35(4), pages 911-926.
  10. Zafar Iqbal & Ghulam Mustafa Zahid, 1998. "Macroeconomic Determinants of Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(2), pages 125-148.
  11. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
  12. Pyatt, Graham, 1985. "Commodity Balances and National Accounts: A SAM Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 155-69, June.
  13. repec:ner:tilbur:urn:nbn:nl:ui:12-176687 is not listed on IDEAS
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