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Dynamic Effects of Agriculture Trade in the Context of Domestic and Global Liberalisation: A CGE Analysis for Pakistan

Rizwana Siddiqui

No 2007:38, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: This paper studies dynamic effects of agriculture trade in the context of domestic and global liberalisation. Being the largest sector of the economy, the agriculture sector contributes substantially to the growth process. Using a small CGE model for Pakistan and a 2002 Pakistan Social Accounting Matrix as data base, the simulations are conducted to measure the effects of domestic agriculture trade liberalisation in isolation and in conjunction with changes in the world economy. The novelty of this paper is that it introduces dynamics in the Pakistani CGE model through capital accumulation. The results illuminate the greater effectiveness of agriculture trade liberalisation in promoting the overall growth process, given increased market access because of liberalisation in the world economy.

Keywords: International Trade; Growth; Dynamic CGE (search for similar items in EconPapers)
JEL-codes: O4 F15 F14 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2007
New Economics Papers: this item is included in nep-cmp, nep-cwa and nep-int
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http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-38.pdf First Version, 2007 (application/pdf)

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