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The Impact of Global Cotton Markets on Rural Poverty in Pakistan

Author

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  • Orden, David
  • Salam, Abdul
  • Dewina, Reno
  • Nazli, Hina
  • Minot, Nicholas

Abstract

The incidence of rural poverty in Pakistan increased during the late 1990s after having declined during the 1980s and early 1990s. A number of structural factors have been identified as contributing to rural poverty in Pakistan. Among them are low levels of health and education spending and the unequal of farmland distribution. These structural factors help explain the levels of poverty in Pakistan, but not the increase in poverty in the late 1990s. One hypothesis is that the increase in rural poverty is the result of an adverse trend in world commodity prices, particularly cotton, a major commercial crop, and other agricultural commodities such as wheat, rice, and sugar. The overall objective of this paper is to measure the impact of changes in world commodity prices on poverty in rural Pakistan, with particular focus on cotton prices and the main cotton producing districts of Punjab and Sindh provinces.

Suggested Citation

  • Orden, David & Salam, Abdul & Dewina, Reno & Nazli, Hina & Minot, Nicholas, 2006. "The Impact of Global Cotton Markets on Rural Poverty in Pakistan," 2006 Annual meeting, July 23-26, Long Beach, CA 21381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21381
    DOI: 10.22004/ag.econ.21381
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    References listed on IDEAS

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    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
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    4. Mr. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 2003/110, International Monetary Fund.
    5. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    6. Gillson, I & Poulton, Colin & Balcombe, Kelvin & Page, S, 2004. "Understanding the impact of Cotton Subsidies on developing countries," MPRA Paper 15373, University Library of Munich, Germany.
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    Cited by:

    1. Dorosh, Paul A. & Salam, Abdul, 2007. "Distortions to Agricultural Incentives in Pakistan," Agricultural Distortions Working Paper Series 48482, World Bank.
    2. World Bank, 2007. "Pakistan : Promoting Rural Growth and Poverty Reduction," World Bank Publications - Reports 7984, The World Bank Group.
    3. Hewitt, Joanna, 2008. "Impact evaluation of research by the International Food Policy Research Institute on agricultural trade liberalization, developing countries, and WTO's Doha negotiations:," Impact assessments 28, International Food Policy Research Institute (IFPRI).

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    Keywords

    Food Security and Poverty;

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