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

2021 ◽  
pp. 097639962110106
Author(s):  
Saud Ahmad ◽  
Muhammad Aamir Khan ◽  
Usman Mustafa
Keyword(s):  
Income Inequality ◽  
World Economy ◽  
Empirical Studies ◽  
Real Income ◽  
Agricultural Trade ◽  
Public Welfare ◽  
Trade Policies ◽  
Agriculture Sector ◽  
Lower Extent ◽  
Potential Impact

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.

scholarly journals U.S.-China Agricultural Trade: Constraints and Potential

1998 ◽  
Vol 30 (1) ◽  
pp. 113-126 ◽  
Author(s):  
Eric J. Wailes ◽  
Cheng Fang ◽  
Francis C. Tuan
Keyword(s):  
Economic Reforms ◽  
Real Income ◽  
Agricultural Trade ◽  
Growth Potential ◽  
Security Policies ◽  
Open Door ◽  
Open Door Policy ◽  
Trade Reforms ◽  
Nontariff Barriers ◽  
Resource Endowment

AbstractChina's agricultural trade expanded rapidly following economic reforms and the open-door policy adopted in the late 1970s. The composition of agricultural trade with China follows its labor-abundant and land-scarce resource endowment with imports of bulk and processed intermediates and exports of consumer-ready and processed goods. Constraints on U.S.China agricultural trade include tariffs, state trading, food security policies, and other nontariff barriers. Growth potential is based on China's fundamental demand forces including the world's largest population, a high real-income growth rate, an emerging urban middle class, and further trade reforms to be implemented through accession to the World Trade Organization.

scholarly journals Protection and the Business Cycle

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
Kyle Bagwell ◽  
Robert W. Staiger
Keyword(s):  
Business Cycle ◽  
Empirical Studies ◽  
Trade Policies ◽  
Trade Volume ◽  
Upward Trend ◽  
Theoretical Support ◽  
Empirical Regularities ◽  
The Business Cycle ◽  
Liberal Trade ◽  
The Relationship

Abstract Empirical studies have repeatedly documented the countercyclical nature of trade barriers. In this paper, we propose a simple theoretical framework that is consistent with this and other empirical regularities in the relationship between protection and the business cycle. Focusing on self-enforcing trade agreements, we find theoretical support for countercyclical movements in protection levels. The fast growth in trade volume that is associated with a boom phase facilitates the maintenance of more liberal trade policies than can be sustained during a recession phase in which growth is slow. We also find that acyclic increases in the level of trade volume give rise to protection, implying that whether rising imports are met with greater liberalization or increased protection depends on whether they are part of a cyclic upward trend in trade volume or an acyclic increase in import levels.

FREE TRADE AND GROWTH IN THE WORLD ECONOMY

2011 ◽  
Vol 56 (03) ◽  
pp. 291-306 ◽  
Author(s):  
PETER LLOYD
Keyword(s):  
Free Trade ◽  
World Economy ◽  
Empirical Studies ◽  
Growth Effect ◽  
Limited Effect ◽  
Beneficial Effects ◽  
The World ◽  
The Relationship ◽  
Level Effect ◽  
Trade And Growth

This paper explores the relationship between free trade and the rate of economic growth. It is argued that freeing trade has both a level effect and a growth effect. Most empirical studies ignore the growth effect and, therefore, considerably understate the beneficial effects of freeing trade. Progress towards free trade in the GATT/WTO era is far from complete. Regionalism has had a limited effect on freeing trade globally. The completion of the Doha Development Round is needed to restart trade as the engine of growth.

Can the Post-COVID FDI Boost the Indian Economy?

2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Policies ◽  
Cge Model ◽  
Foreign Direct Investments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Area Of Interest ◽  
Potential Impact ◽  
The Impact

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.

scholarly journals The competitiveness of Czech agrarian trade within the context of the global crisis

2013 ◽  
Vol 59 (No. 4) ◽  
pp. 183-193 ◽  
Author(s):  
L. Smutka ◽  
J. Burianová
Keyword(s):  
Czech Republic ◽  
World Trade ◽  
World Economy ◽  
Agricultural Trade ◽  
High Rate ◽  
The Czech Republic ◽  
The World ◽  
Territorial Structure ◽  
Merchandise Trade ◽  
Very High

World trade underwent a significant shock within the recent years, which caused a decline in the world economy primarily in the year 2009. Within the following years (2010 and 2011), the high rate of growth from the years preceding the crisis could not be restored. The crisis had an impact on all segments of the merchandise trade, whereby the trade in agricultural and food products was affected the least by the crisis. In the case of the Czech Republic, the crisis of the global and national economy was reflected in the case of agricultural trade primarily by the way of a decline in the rate of the growth of export, which was very high in the period prior to the crisis. As far as the territorial structure and commodity structure of agricultural trade is concerned, their development in the years 2008–2011 was not affected in any largely significant manner. In relation to the main objective of this article, which was to identify the effects of the crisis on the competitiveness of Czech agricultural trade, it may be stated that the crisis itself did not worsen the competitiveness of agricultural trade in any significant manner.  

scholarly journals Household Impacts of Tariffs: Data and Results from Agricultural Trade Protection

2020 ◽  
Author(s):  
Erhan Artuc ◽  
Guido Porto ◽  
Bob Rijkers
Keyword(s):  
Household Survey ◽  
Real Income ◽  
Agricultural Trade ◽  
Trade Protection ◽  
Data Set ◽  
Middle Income ◽  
Trade Reforms ◽  
Percentage Points ◽  
Heterogeneous Effects ◽  
Household Incomes

Abstract How do trade reforms impact households in different parts of the income distribution? This paper presents a new database, the Household Impacts of Tariffs data set, which contains harmonized household survey and tariff data for 54 low- and middle-income countries. The data cover highly disaggregated information on household budget and income shares for 53 agricultural products, wage labor income, non-farm enterprise sales and transfers, as well as spending on manufacturing and services. Using a stylized model of the first-order impacts of import tariffs on household real income, this paper quantifies the welfare implications of agricultural trade protection. On average, unilateral elimination of agricultural tariffs would increase household incomes by 2.50 percentage points. Import tariffs have highly heterogeneous effects across countries and within countries across households, consumers, and income earners; the average standard deviation of the gains from trade within a country is 1.01 percentage points.

scholarly journals Growth Impacts of Income Inequality: Empirical Evidence From Nigeria

2019 ◽  
Vol 10 (3) ◽  
pp. 226
Author(s):  
Ademola Obafemi Young
Keyword(s):  
Income Inequality ◽  
Empirical Studies ◽  
Growth Time ◽  
African Countries ◽  
Developed Economies ◽  
Rights Protection ◽  
Property Rights Protection ◽  
Long Run ◽  
Theoretical Predictions ◽  
The Impact

The debate on whether income inequality promotes, restricts, or is independent of economic growth has been widely studied and discussed in development economics discourse. However, a careful reading of this extensive extant and burgeoning literature suggests that, other than the ambivalent nature and the fact that the bulk of these studies relied heavily on cross-section/-country/panel econometric analysis, empirical studies examining the nexus in the context of less developed economies, particularly, African countries, has received less attention, as most of the extant studies predominantly focused on developed economies. This current study, thus, attempts to examine the impact of inequality on growth in Nigeria spanning between the period 1970 and 2018. It also examined the theoretical predictions of some of the distinct transmission channels through which inequality impacts growth. Time series econometrics were applied. The results obtained consistently revealed that inequality hurts long-run growth in Nigeria. Also, the results obtained revealed that inequality in income increases relative redistribution and fertility, but lessens investment, gross enrollment ratio, and property rights protection in Nigeria, which may in turn impede growth.

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