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

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.international trade, Growth, Dynamic CGE

Human Capital vs. Physical Capital : A Cross-Country Analysis of Human Development Strategies

This study estimates a small simultaneous equation model using panel data from sixty-four countries for the years 1996 and 2004. The model is estimated by various techniquesOLS, TSLS, dummy variable approach introducing variation at the regional level, and fixed and random effect approaches introducing variation at the individual country level. The objective is to identify the importance of basic needs in human development strategies in Asia, Africa, and the rest of the world (ROW). The results show that income per capita has priority over basic needs expenditure in development strategies of all regions despite being quantitatively different. However, the importance of basic needs expenditure cannot be denied in terms of capabilities development (improvement in health) that ultimately increases productivity.Human Capital, Physical Capital, Income Per Capita, Basic Needs Expenditures, Human Development

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

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.International Trade, Growth, Dynamic CGE

A Decomposition of Male-Female Earnings Differentials

The participation of women in paid economic activities has increased in almost all the countries and Pakistan is no exception.1 However, the quantitative increase in female participation in market production has neither led to qualitative improvements in their lives nor to equality of opportunity and treatment between males and females at home and in the labour market. In emerging global economic scenario, the role of females in a country’s economic development is becoming critical. This will be a major issue in the next century, as welfare of a society can not be improved unless specific measures are undertaken to improve the socio-economic status of women. In this study we intend to examine the role of females in labour market, particularly their earnings relative to the earnings of males.

Human Capital vs Physical Capital: A cross country analysis of human development strategies

This study estimates a small simultaneous equation model using panel data from sixty-four countries for the years, 1996 and 2004. The model is estimated by various techniques - OLS, TSLS, dummy variable approach introducing variation at the regional level and fixed and random effect approaches introducing variation at the individual country level. The objective is to identify the importance of basic needs in human development strategies in Asia, Africa and rest of the world (ROW). The results show that income per capita has priority over basic need expenditure in development strategies of all regions despite quantitatively different. However, the importance of basic need expenditure cannot be denied in terms of capabilities development (improvement in health) that ultimately increases productivity.Human capital, Physical capital, Income per capita, Basic needs Expenditures, Human Development

Human Capital vs. Physical Capital: A Cross-Country Analysis of Human Development Strategies

This study estimates a small simultaneous equation model using panel data from sixty-four countries for the years 1996 and 2004. The model is estimated by various techniques—OLS, TSLS, dummy variable approach introducing variation at the regional level, and fixed and random effect approaches introducing variation at the individual country level. The objective is to identify the importance of basic needs in human development strategies in Asia, Africa, and the rest of the world (ROW). The results show that income per capita has priority over basic needs expenditure in development strategies of all regions despite being quantitatively different. However, the importance of basic needs expenditure cannot be denied in terms of capabilities development (improvement in health) that ultimately increases productivity.Human Capital, Physical Capital, Income Per Capita, Basic Needs Expenditures, Human Development

Modelling gender dimensions of the impact of economic reforms on time allocation among market, household, and leisure activities in Pakistan

Developing countries are increasingly concerned about gender dimensions of the impacts of economic reforms initiated under structural adjustment and stabilization programmes. This article develops a gendered Computable General Equilibrium model based on the notions of production in paid economy and unpaid care economy pioneered by Fontana and Wood and applies it to Pakistan. The study assesses the impact of two types of shocks: trade liberalisation and fiscal adjustment. Results support the contention that trade liberalisation in the presence of compensatory measure over burden women but reduces income-based poverty by all measures. In all other exercises employment in market sectors reduces. The study concludes that despite changes in structure of market employment, gender division of labour remains unequal within household economy.CGE; Gender; International Trade; Labour market

Income, Public Social Services, and Capability Development: A Cross-district Analysis of Pakistan

Is household income enough for human development or should government direct resources towards the provision of social services to improve capabilities of individuals? The former is emphasised by the World Bank, and the latter by the United Nation Development Programme (UNDP). This paper tests both sides of the question by estimating a basic needs policy model for Pakistan, using cross-district data for the year 1998-99. The results are consistent with the view that government provision of social services affects human capabilities significantly. However, the ultimate constraints on the sustainable capability development are the availability of material resources.Basic Needs, Capabilities and Income Poverty, Public Provision of Social Services and Household Income

Modelling Gender Dimensions of the Impact of Economic Reforms on Time Allocation among Market, Household, and Leisure Activities in Pakistan

Developing countries are increasingly concerned about gender dimensions of the impacts of economic reforms initiated under the structural adjustment and stabilisation programmes. This article develops a gendered Computable General Equilibrium model based on the notions of production in paid economy and unpaid care economy pioneered by Fontana and Wood and applies it to Pakistan. The study assesses the impact of two types of shocks: trade liberalisation and fiscal adjustment. Results support the contention that trade liberalisation in the presence of compensatory measures overburdens women but reduces income-based poverty by all measures. In all other exercises, employment in the market sectors is decreased. The study concludes that despite significant changes in market employment, gender division of labour remains unequal within household economy.