IDEAS home Printed from
MyIDEAS: Login to save this article

Impact of Trade Reforms on Poverty

  • Usman Qadir

    (Pakistan Institute of Development Economics, Islamabad.)

  • Muhammad Ali Kemal

    (Pakistan Institute of Development Economics, Islamabad.)

  • Hasan Mohammad Mohsin

    (Pakistan Institute of Development Economics, Islamabad.)

Trade plays a vital role in determining the growth process of any country. Trade liberalisation and openness of the economy are now almost universally accepted as the main ingredients of successful economic growth and welfare of the population. These are believed to be responsible for the exceptional growth of industrialised and newly industrialised countries. Many developing countries, under the auspices of the WTO are taking major steps to liberalise their trade regimes. However, in the short run, the impact of these policy changes is generally perceived to be painful for both the producers and the consumers; and especially so for the latter. A key question here is the impact of trade reforms on poverty, which has persisted in most developing countries despite concerted efforts on many fronts to eradicate this social evil. Like many developing countries, Pakistan has undertaken far-reaching trade reforms aimed at creating an open international trading environment. Pakistan’s dependence on international trade, as measured by the total trade to GDP ratio, has increased significantly from 13.3 percent in 1960-61, to 32.47 percent in 1992-93. As such, it is important to determine if there is a relationship between trade liberalisation and poverty alleviation; do trade reforms lead to reduction in country wide poverty levels or not. The aim of this study is to examine the impact of trade reforms on poverty alleviation in Pakistan. It attempts to answer the question of whether openness of trade has led to a reduction in poverty or not. The study is organised as follows. Sections 2 and 3 provide a review of Pakistan’s trade policies and literature on the estimation of poverty. Data and methodology used to examine the relationship between trade reforms and poverty are discussed in Section 4. Empirical findings of the study are analysed in Section 5 and in Section 6 the main conclusions of the study are presented.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 39 (2000)
Issue (Month): 4 ()
Pages: 1127-1137

in new window

Handle: RePEc:pid:journl:v:39:y:2000:i:4:p:1127-1137
Contact details of provider: Postal:
P.O.Box 1091, Islamabad-44000

Phone: (92)(51)9248051
Fax: (92)(51)9248065
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Sarfraz K. Qureshi & G. M. Arif, 2001. "Profile of Poverty in Pakistan, 1998-99," MIMAP Technical Paper Series 2001:05, Pakistan Institute of Development Economics.
  2. Ehtisham Ahmad & Stephen Ludlow, 1989. "Poverty, Inequality and Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(4), pages 831-850.
  3. 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.
  4. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
  5. 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.
  6. S.M. Naseem, 1973. "Mass Poverty in Pakistan. Some Preliminary Findings," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 12(4), pages 317-360.
  7. Shahnawaz Malik, 1996. "Determinants of Rural Poverty in Pakistan: A Micro Study," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 35(2), pages 171-187.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:39:y:2000:i:4:p:1127-1137. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.