Welfare and Poverty Impacts of Policy Reforms in Bangladesh: A General Equilibrium Approach
Our study assesses the impacts of different policy reforms, such as domestic trade liberalisation, implementation of WTO agreements in the textile sector and WTO negotiations on the movement of natural persons, and examines their welfare and poverty implications at the household level in the economy of Bangladesh. We use a comparative static computable general equilibrium (CGE) model based on the 1995-96 Social Accounting Matrix (SAM) of the Bangladesh economy. This study carries out three simulations. The first simulation entails full liberalisation of tariffs and the resultant reduction in government revenues are mobilised by enhancing the existing production taxes and imposing new taxes on construction sector; in the second simulation, export of ready-made garments (RMG) are reduced by 25 percent; and in the third simulation the remittances are increased by 50 percent. Equivalent variations (EVs) and Foster-Greer-Thorbecke (FGT) measures are applied to estimate welfare and poverty changes respectively. The prime observation is that rural poverty, as measured by the head count ratio, is observed to increase under all three simulations. The gap and severity of the rural poor have also worsened in all three simulations indicating worse poverty profiles for the rural poor compared to the base-run scenario. Urban head count poverty has also deteriorated in the first and second simulations, while has improved only in the third simulation. The gap and severity of poverty for the urban population have, however, deteriorated in all three simulations.
|Date of creation:||2004|
|Contact details of provider:|| Postal: Harold Hankins Building, Precinct Centre, Booth Street West, Manchester, M13 9QH|
Web page: http://www.sed.manchester.ac.uk/idpm
More information through EDIRC
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.:
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999.
"Poverty Analysis Within a General Equilibrium Framework,"
9909, Laval - Recherche en Politique Economique.
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
- Ann Harrison & Gordon Hanson, 1999.
"Who Gains from Trade Reform? Some Remaining Puzzles,"
NBER Working Papers
6915, National Bureau of Economic Research, Inc.
- Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, vol. 59(1), pages 125-154, June.
- Thomas W. Hertel & Will Martin, 2000. "Liberalising Agriculture and Manufactures in a Millennium Round:Implications for Developing Countries," The World Economy, Wiley Blackwell, vol. 23(04), pages 455-469, 04.
- Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas; A Case Study of the Impacton Bangladesh," IMF Working Papers 04/108, International Monetary Fund.
- Diao, Xinshen & Somwaru, Agapi, 2001. "Impact of the MFA phase-out on the world economy," TMD discussion papers 79, International Food Policy Research Institute (IFPRI).
- Walmsley, Terrie L. & Winters, L. Alan, 2005.
"Relaxing the Restrictions on the Temporary Movement of Natural Persons: A Simulation Analysis,"
Journal of Economic Integration,
Center for Economic Integration, Sejong University, vol. 20, pages 688-726.
- Walmsley, Terri Louise & Winters, L. Alan, 2003. "Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis," CEPR Discussion Papers 3719, C.E.P.R. Discussion Papers.
- Ann Harrison, 1995.
"Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries,"
NBER Working Papers
5221, National Bureau of Economic Research, Inc.
- Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
- Harrison, Ann, 1991. "Openness and growth : a time series, cross-country analysis for developing countries," Policy Research Working Paper Series 809, The World Bank.
- Sebastian Edwards, 1997.
"Openness, Productivity and Growth: What Do We Really Know?,"
NBER Working Papers
5978, National Bureau of Economic Research, Inc.
- Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
- Rizwana Siddiqui & A. R. Kemal, 2006.
"Remittances, Trade Liberalisation, and Poverty in Pakistan : The Role of Excluded Variables in Poverty Change Analysis,"
Development Economics Working Papers
22224, East Asian Bureau of Economic Research.
- Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
- Siddiqui, Rizwana & Kemal, A.R., 2002. "Remittances, trade liberalisation, and poverty in Pakistan: The role of excluded variables in poverty change analysis," MPRA Paper 4228, University Library of Munich, Germany, revised Oct 2006.
- Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," PIDE-Working Papers 2006:1, Pakistan Institute of Development Economics.
- Arndt, Channing & Dorosh, Paul A. & Fontana, Marzia & Zohir, Sajjad & El-Said, Moataz & Lungren, Christen, 2002. "Opportunities and challenges in agriculture and garments," TMD discussion papers 107, International Food Policy Research Institute (IFPRI).
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- Francisco Rodriguez & Dani Rodrik, 2001.
"Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence,"
in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338
National Bureau of Economic Research, Inc.
- Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers.
- Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
- Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
When requesting a correction, please mention this item's handle: RePEc:ags:idpmcr:30588. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.