Cororaton, Caesar B.Orden, David2017-09-072017-09-072009-06https://hdl.handle.net/10986/28179Using recent estimates of industry assistance rates, the effects of trade liberalization in the rest of the world and in Pakistan alone are analyzed using a global and a Pakistan computable general equilibrium (CGE) model under two tax replacement schemes: a direct income tax and an indirect tax replacement. The results indicate that the distributional and poverty effects in Pakistan of a unilateral liberalization of all traded goods are significantly greater than the effects of trade liberalization in the rest of the world. There is relatively higher increase in real income and larger decline in poverty incidence in poor households both in rural and urban areas. The effects of agricultural trade liberalization alone in both the rest of the world and in Pakistan are considerably smaller than those from trade liberalization involving all goods. In both the agricultural and all-goods trade liberalization scenarios involving direct income tax replacement, real household income is raised and the poverty incidence is lowered at varied rates across all household groups except for the urban non-poor. When an indirect tax replacement is used, where the burden of replacing tariff revenue is shared by all household groups depending on their consumption structure, there is reduction in household income for most of the groups and less reduction of poverty.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL COMMODITIESAGRICULTURAL COMMODITYAGRICULTURAL LIBERALIZATIONAGRICULTURAL OUTPUTAGRICULTURAL PRICEAGRICULTURAL PRICESAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL WORKERSAGRICULTUREBORDER PRICEBUDGET IMPLICATIONCAPITAL ACCUMULATIONCOMMERCECOMMODITIESCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPETITIVENESSCONSUMER PRICECONSUMER PRICE INDEXCONSUMER PRICESCONSUMERSCONSUMPTION INCREASESDECLINING WAGESDEMAND CURVEDEMAND ELASTICITYDEMAND FUNCTIONDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISPOSABLE INCOMEDIVIDENDDIVIDEND INCOMEDIVIDENDSDOMESTIC INFLATIONDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRICEDOMESTIC PRICESDROUGHTDYNAMIC ANALYSISECONOMIC MODELSECONOMIC STRUCTUREELASTICITYELASTICITY OF SUBSTITUTIONEQUILIBRIUM PRICESESTIMATES OF POVERTYEXCHANGE RATEEXPENDITUREEXPORT MARKETEXPORT SECTORSEXPORTSFACTOR PRICESFACTORS OF PRODUCTIONFARM ACTIVITIESFARM HOUSEHOLDSFARM PRODUCTIVITYFARM PRODUCTSFARMERSFINANCING REQUIREMENTFISCAL BURDENFIXED EXCHANGE RATEFOOD POLICYFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN TRADEGLOBAL POVERTYGLOBAL TRADEGOVERNMENT BUDGETGOVERNMENT FUNDSGOVERNMENT INTERVENTIONGOVERNMENT INVOLVEMENTGOVERNMENT REVENUEGROSS VALUEHOUSEHOLD CONSUMPTIONHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD SAVINGSHOUSEHOLD WELFAREINCIDENCE OF POVERTYINCOMEINCOME EFFECTSINCOME INEQUALITYINCOME REDISTRIBUTIONINCOME TAXINCOME TAXESINCOMESINDUSTRIALIZATIONINEQUALITYINFLATIONIRRIGATIONLABOR MARKETLAND HOLDINGSLANDHOLDINGSLANDOWNERSLIBERALIZATIONSLOCAL CURRENCYMANUFACTURING INDUSTRIESMARKET PRICESMARKETINGMONOPOLYNATIONAL INCOMENATIONAL POVERTYNATIONAL POVERTY LINENOMINAL INCOMEPOLITICAL ECONOMYPOORPOOR HOUSEHOLDPOOR HOUSEHOLDSPOVERTY GAPPOVERTY IMPACTPOVERTY INCIDENCEPOVERTY INDEXPOVERTY INDICATORSPOVERTY INDICESPOVERTY LINESPOVERTY MEASURESPOVERTY RATESPOVERTY REDUCTIONPOVERTY SEVERITYPRICE CHANGEPRICE CHANGESPRICE DISTORTIONSPRICE INCREASESPRICE LEVELSPRICING POLICIESPRODUCTION FUNCTIONPRODUCTION STRUCTURERATE OF RETURNRATE OF RETURN TO CAPITALRATES OF RETURNREAL EXCHANGE RATEREAL GDPREAL INCOMEREMITTANCESRETURNSRURALRURAL AREARURAL AREASRURAL DEVELOPMENTRURAL GROWTHRURAL HOUSEHOLDSRURAL POORRURAL POVERTYRURAL POVERTY INCIDENCESALESALESSAVINGSSKILLED WORKERSSMALL FARMSSUBSTITUTESSUPPLY CURVESUPPLY ELASTICITYSUPPLY FUNCTIONSUSTAINABLE DEVELOPMENTTARIFF REVENUETAXTAX POLICYTAX RATETAX STRUCTURETAXATIONTRADE LIBERALIZATIONTRADE POLICIESTRADE SECTORTRADE SECTORSTRADE TAXTRADE TAXESTRUST FUNDSVALUE ADDEDWAGE RATESWAGESWORKERS ­ EXPERIENCEWORLD MARKETWORLD TRADEWTOWorking PaperWorld Bank10.1596/28179