EconPapers    
Economics at your fingertips  
 

Agricultural Trade and Ultra-Poor in Pakistan: An Application of CGE Model

Saud Ahmad, Muhammad Aamir Khan and Usman Mustafa

Millennial Asia, 2022, vol. 13, issue 3, 491-512

Abstract: In the modern integrated world, the synthesis of countries for trade is often viewed as a crucial source of income and growth disparities across nations. Well-known channels of economic theory can trace the growth effects of trade. However, there is a substantial conflict among empirical studies regarding gains from agricultural trade. Therefore, this study examines the economy-wide impact of agriculture trade liberalization/protection on agriculture production, agriculture trade, income redistribution and public welfare. An extension of the GTAP model known as MyGTAP is employed and the world economy is disaggregated into 20 regions and 11 sectors with Pakistan as a home country. Further, results explore greater gains from an increased level of liberalization towards the agriculture sector in terms of agriculture production, real factors’ wage, terms of trade and household welfare. Rural households enjoy relatively higher real income and income inequality declines in Pakistan in the case of liberalization and protection. However, comparatively protectionism reduces inequality by the lower extent, and said study also points out that neither change in real gross domestic product nor public welfare turns out to be a good indicator of assessing potential impact of trade policies on income inequality.

Keywords: Agriculture trade policy; CGE modelling; income redistribution; rural welfare (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09763996211010607 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:millen:v:13:y:2022:i:3:p:491-512

DOI: 10.1177/09763996211010607

Access Statistics for this article

More articles in Millennial Asia
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2023-01-06
Handle: RePEc:sae:millen:v:13:y:2022:i:3:p:491-512