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Tariff Reduction and Income Distribution: A CGE-based Analysis for Urban and Rural Households in Pakistan

Author

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  • Rehana Siddiqui

    (Pakistan Institute of Development Economics)

  • Rizwana Siddiqui

    (Pakistan Institute of Development Economics)

  • A.R. Kemal

    (Pakistan Institute of Development Economics)

Abstract

Most developing countries, facing persistent budget deficit and balance of payment crisis, adopted Structural Adjustment Programme (SAP hereinafter) in 1980s. Under the programme there has been a general shift away from the quantitative restrictions and price controls towards liberalisation and privatisation. Has this policy package resulted in the desired results of improving the economic conditions, structural imbalance and income distribution in Pakistan or not? This is an important question. Such a question may be answered by simulation a priori or actual trends against counter factual in the absence of such changes. A number of empirical studies, in 1990’s, examined this question1 and showed that in most countries the initial impact of the reforms was worsening growth rates and income distribution.

Suggested Citation

  • Rehana Siddiqui & Rizwana Siddiqui & A.R. Kemal, 2001. "Tariff Reduction and Income Distribution: A CGE-based Analysis for Urban and Rural Households in Pakistan," PIDE Research Report 2001:1, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:rrepot:2001:1
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    References listed on IDEAS

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    1. Meller, Patricio, 1991. "Adjustment and social costs in Chile during the 1980s," World Development, Elsevier, vol. 19(11), pages 1545-1561, November.
    2. Zafar Iqbal & Rizwana Siddiqui, 1999. "Distributional Impact of Structural Adjustment on Income Inequality in Pakistan: A SAM-based Analysis," MIMAP Technical Paper Series 1999:02, Pakistan Institute of Development Economics.
    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. Azizur Rahman Khan, 1997. "Globalisation, Liberalisation, and Equitable Growth: Lessons from Contemporary Asian Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(4), pages 915-928.
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    8. Thorbecke, Erik, 1991. "Adjustment, growth and income distribution in Indonesia," World Development, Elsevier, vol. 19(11), pages 1595-1614, November.
    9. Rizwana Siddiqui & Zafar Iqbal, 1999. "Social Accounting Matrix of Pakistan for 1989-90," PIDE-Working Papers 1999:171, Pakistan Institute of Development Economics.
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    Cited by:

    1. Arshad Ali Bhatti & Zakia Batool & Hasnain A. Naqvi, 2015. "Fiscal Policy and Its Role in Reducing Income Inequality- A CGE Analysis for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 843-864.
    2. 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.
    3. Akhter, Naseem & Ali, Amanat, 2007. "Does Trade Liberalization Increase the Labor Demand Elasticities? Evidence from Pakistan," MPRA Paper 3881, University Library of Munich, Germany.
    4. Rizwana Siddiqui & Abdul Razzaq Kemal & Rehana Siddiqui & Ali Kemal, 2008. "Tariff Reduction, Fiscal Adjustment and Poverty in Pakistan: a CGE-Based Analysis," Working Papers MPIA 2008-17, PEP-MPIA.
    5. Feltenstein, Andrew & Mejia, Carolina & Newhouse, David & Sedrakyan, Gohar, 2017. "The poverty implications of alternative tax reforms: Results from a numerical application to Pakistan," Journal of Asian Economics, Elsevier, vol. 52(C), pages 12-31.
    6. Usman Qadir & Muhammad Ali Kemal & Hasan Mohammad Mohsin, 2000. "Impact of Trade Reforms on Poverty," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 1127-1137.
    7. Usman Mustafa & Waqar Malik & Mohammad Sharif, 2001. "Globalisation and Its Implications for Agriculture, Food Security, and Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(4), pages 767-786.

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