scholarly journals The Impact of Tariff Reforms on Income Distribution in Pakistan: A CGE-based Analysis

1999 ◽  
Vol 38 (4II) ◽  
pp. 789-804 ◽  
Author(s):  
Rehana Siddiqui ◽  
Rizwana Siddiqui ◽  
Zafar Iqbal
Keyword(s):  
Developing Countries ◽  
Income Distribution ◽  
Computable General Equilibrium ◽  
Asset Price ◽  
Relative Price ◽  
Structural Reforms ◽  
Policy Reforms ◽  
Price Effect ◽  
Cge Models ◽  
The Impact

Like most developing countries, Pakistan has undertaken drastic economic policy reforms since the mid-1980s. Under these structural reforms there is a general shift away from quantitative restrictions and price controls towards liberalisation and privatisation. The empirical studies1 analysing the impact of the reforms report mixed results. Economy wide framework like Computable General Equilibrium (CGE), based on the social accounting matrix, is well suited to analysing the effect of these structural reforms. The CGE models are developed to capture the medium to long-run effects through which adjustment programmes affect income distribution. These models are often used to evaluate the effects of trade and tax policies on income distribution in developing countries. There are three interacting channels through which these adjustment policies affect income distribution, viz., the relative price effect, the asset price effect and the shift in portfolio. However, in this study, we are analysing the effect of changes in relative prices only.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

scholarly journals Rice and Wheat Tariff Impact in Bangladesh: CGE Analysis Using Gtap Model

2019 ◽  
Vol 11 (10) ◽  
pp. 63
Author(s):  
Syed Shoyeb Hossain ◽  
Huang Delin
Keyword(s):  
General Equilibrium ◽  
South Asian ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Relative Price ◽  
Agricultural Crop ◽  
Asian Countries ◽  
Cge Models

Computable General Equilibrium (CGE) models are mostly used for agricultural market analysis globally. This paper constructs a Computable General Equilibrium model using Global Trade Analysis Project (GTAP) model followed by the GTAP 9A database. The primary aim of this paper is to analyze the potential impact of tariff increase on Agricultural crop sectors (Rice and Wheat) in Bangladesh and then describes the construction of the database. It also attempts to detect the trend of the tariff change impact on rice and wheat production in Bangladesh and other South Asian countries. Using database reference year 2011, this paper builds a computable general equilibrium model to measure the Tariff impact in Bangladesh. Result of the model suggests that if an import tariff is imposed, it will affect domestic-foreign relative price between Bangladesh and other south Asian countries. Bilateral trade between Bangladesh and South Asia country will decline sharply. Finally, this paper explained the policy scenario, data sources, and processing methods in details.

scholarly journals Ekonomi Pembangunan Terhadap Pengangguran di Provinsi Jambi

2014 ◽  
Vol 2 (2) ◽  
pp. 25-39
Author(s):  
Afrizal Afrizal
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Income Distribution ◽  
Low Income ◽  
Social Order ◽  
Street Children ◽  
Urgent Problem ◽  
The Social ◽  
The Impact

Unemployment in developing countries such as Indonesia, the economic development of this country as a growing number of unemployment is a problem that is more complicated and more serious than the problem of changes in income distribution are less profitable low-income residents Unemployment in Jambi Province has reached tens of thousands of people is an urgent problem that must be solved because of the impact of unemployment it would be very dangerous to the social order of life. It is a fact that various social evils such as theft / muggings/robberies, prostitution, Jula buy children, street children and others merupakandampakdaripengangguran.

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.

A Note on the Structure of Pakistan's Foreign Trade (Notes & Comments)

1969 ◽  
Vol 9 (2) ◽  
pp. 212-223 ◽  
Author(s):  
Joseph J. Stern
Keyword(s):  
Developing Countries ◽  
Foreign Exchange ◽  
Terms Of Trade ◽  
Relative Price ◽  
Primary Commodity ◽  
Primary Products ◽  
Long Run ◽  
Short Run ◽  
High Degree ◽  
The Impact

Developing countries generally are not only concerned with the level of their export earnings but also with the commodity and geographic composition of exports, and, to a lesser extent, of imports. Concern over a high degree of commo¬dity structure in exports is usually based on its presumed association with adverse price movements. A more diversified export commodity structure will reduce the impact on the overall level of foreign-exchange earnings from price fluctuations in any particular commodity. While concentration on a few commodities need not be identified with being a primary commodity exporter, for many developing countries a high degree of commodity concentration is often correlated with the exports of primary commodities [6 ; 9]. The familiar terms-of-trade argument, the belief that the relative price of primary commodity exports will fall, over the long run, as compared to the price of industrial goods imports, provides a second rationale for seeking a diversification in the composition of exports. Even in the short run the prices of most primary products in interna¬tional trade vary more sharply from year to year than those of most industrial products thus providing an additional incentive for decreasing commodity con¬centration [5].

THE APPLICATION OF AN ENDOGENOUS POVERTY LINE AND ITS RELATIONSHIP WITH THE POVERTY IMPACT OF ECONOMIC SHOCKS: AN EMPIRICAL INVESTIGATION

2013 ◽  
Vol 58 (01) ◽  
pp. 1350005 ◽  
Author(s):  
TEGUH DARTANTO
Keyword(s):  
Computable General Equilibrium ◽  
Poverty Line ◽  
Poverty Rate ◽  
Policy Reforms ◽  
Economic Shocks ◽  
Percentage Points ◽  
Soybean Price ◽  
The Difference ◽  
Fixed Line ◽  
The Impact

Most of the studies on the poverty impact of economic shocks as well as policy reforms assumed the poverty line as a fixed line; thus, the poverty outcome of shocks may underestimate (overestimate) and mislead in policy guidance. This research aims at empirically investigating the difference of poverty outcome between applying a fixed and an endogenous poverty line. Applying computable general equilibrium microsimulation (CGE-MS), this study has empirically proven that, if a fixed poverty line is applied, the poverty impact of economic shocks which significantly increase (decrease) price will always be underestimated (overestimated). This study empirically found that there is a 0.316 percentage point difference in the poverty outcome between applying the endogenous poverty line and the fixed poverty line when analyzing the impact on poverty in Indonesia of a doubling in the imported soybean price. Supposing the fixed poverty line, the poverty rate will increase by 0.167 percentage points, while supposing the endogenous poverty line, the poverty rate will increase by 0.483 percentage points. Therefore, applying either an endogenous or a fixed poverty line will have a different policy implication. This study strongly suggested that the endogenous poverty line should be applied when analyzing the poverty impact of shocks due to the precision in outcomes.

Tax Policy to Reduce Carbon Emissions in a Distorted Economy: Illustrations from a South Africa CGE Model

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Shantayanan Devarajan ◽  
Delfin S Go ◽  
Sherman Robinson ◽  
Karen Thierfelder
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Alternative Energy ◽  
Carbon Tax ◽  
Cge Model ◽  
Administrative Capacity ◽  
The Cost ◽  
The Impact

Abstract Noting that developing countries may not have the administrative capacity to levy a “pure” carbon tax, we compare the impact of alternative energy taxes with that of a carbon tax in an economy with multiple distortions. We use a disaggregated computable general equilibrium (CGE) model of the South African economy and simulate a range of tax policies that reduce CO2 emissions by 15 percent. Consistent with a “first-best” economy, a carbon tax will have the lowest marginal cost of abatement. But the relationship between a tax on energy commodities and one on pollution-intensive commodities depends critically on other distortions in the system and on structural rigidities in the economy. We demonstrate that if South Africa were able to remove distortions in the labor market, the cost of carbon taxation would be negligible. We conclude that the welfare costs of taxing carbon emissions in developing countries depend more on other distortions than on the country’s own carbon emissions.

scholarly journals Analysis of Integration of the Indonesian Sharia Stock Index with Developing Countries

2021 ◽  
Vol 9 (2) ◽  
pp. 347
Author(s):  
Budiandru Budiandru ◽  
Deni Nuryadin ◽  
Muhammad Dika Pratama
Keyword(s):  
Developing Countries ◽  
Time Series Data ◽  
Stock Index ◽  
Series Data ◽  
Policy Reforms ◽  
Vector Error Correction ◽  
Trade Relations ◽  
Vector Error ◽  
The Impact

<p><em>Globalization is rapidly causing an integration of economic and financial systems worldwide, resulting in shocks to the Islamic stock index and reducing the benefits of diversification for investors. Therefore, this study analyzes the integration, influence, response, and contribution of shocks to each developing country’s Islamic stock index. Specifically, analyzing the effect of developing country sharia stock index shocks on Indonesia's sharia stock index. The study uses monthly time series data for 2011-2021 with samples from Indonesia, Turkey, Malaysia, Pakistan, Kuwait, and India using the Vector Error Correction Model (VECM) method. The results showed cointegration or a long-term relationship in the developing countries’ sharia stock index. The Malaysian Islamic Stock Index and the Indian Islamic Stock Index influence the Indonesian Islamic Stock Index. Furthermore, the Indonesian Islamic Stock Index stabilized the fastest in response to the Turkish Islamic Stock Index shocks. However, the Malaysian Islamic Stock Index shock contributes the most to the Indonesian Islamic Stock Index. Developing countries could improve the infrastructure of the Islamic stock index and policy reforms. This would minimize the impact of international stock index shocks and accelerate integration. Investors should consider the dominant economic strength, geographical factors, and trade relations in determining portfolio diversification in global economic conditions.</em></p><div class="notranslate" style="all: initial;"> </div>

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