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

Author

Listed:
  • Zafar Iqbal

    (Pakistan Institute of Development Economics, Islamabad.)

  • Rizwana Siddiqui

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

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.

Suggested Citation

  • Zafar Iqbal & Rizwana Siddiqui, 1998. "The Impact of Structural Adjustment on Income Distribution in Pakistan A SAM-based Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 377-397.
    • Handle: RePEc:pid:journl:v:37:y:1998:i:4:p:377-397
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    References listed on IDEAS

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    1. Graham Pyatt, 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 155-169, June.
    2. 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.
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    4. Robert J. Barro, 1991. "A Cross-Country Study of Growth, Saving, and Government," NBER Chapters, in: National Saving and Economic Performance, pages 271-304, National Bureau of Economic Research, Inc.
    5. 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.
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    Cited by:

    1. Amir-ud-Din, Rafi & Rashid, Abdul & Ahmad, Shabbir, 2008. "Democracy, Inequality and Economic Development: The Case of Pakistan," MPRA Paper 26935, University Library of Munich, Germany.
    2. Siddiqui, Rizwana & Iqbal, Zafar, 1999. "TARIFF REDUCTION AND FUNCTIONAL INCOME DISTRIBUTION IN PAKISTAN: A CGE Analysis," MPRA Paper 6141, University Library of Munich, Germany.
    3. A. R. Kemal & Rehana Siddiqui & Rizwana Siddiqui, 2001. "Tariff Reduction and Income Distribution: A CGE-based Analysis for Urban and Rural Households in Pakistan," MIMAP Technical Paper Series 2001:11, Pakistan Institute of Development Economics.
    4. 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.
    5. A. R. Kemal & Rehana Siddiqui & Rizwana Siddiqui & M. Ali Kemal, 2003. "An Assessment of the Impact of Trade Liberalisation on Welfare in Pakistan: A General Equilibrium Analysis," MIMAP Technical Paper Series 2003:16, Pakistan Institute of Development Economics.
    6. 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.

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