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Is Trade Liberalisation Pro‐Poor in Pakistan? Evidence from Large‐Scale Manufacturing

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  • Atif Khan Jadoon
  • Ambreen Sarwar

Abstract

This article aims to analyse the impact of industry‐level trade liberalisation (measured through industry‐specific tariff rates) on poverty in Pakistan. Combining data for tariff rates with the Labour Force Survey of Pakistan, we use quantile regression analysis to estimate the impact of changes in tariff rates on workers’ wages (associated with the manufacturing sector of Pakistan) that are at different points of the income distribution. Our findings meaningfully signal that trade liberalisation helps to reduce poverty in the economy. Based on these results, this study provides policy recommendations to reap maximum benefits from trade liberalisation.

Suggested Citation

  • Atif Khan Jadoon & Ambreen Sarwar, 2020. "Is Trade Liberalisation Pro‐Poor in Pakistan? Evidence from Large‐Scale Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 360-394, September.
    • Handle: RePEc:bla:ausecr:v:53:y:2020:i:3:p:360-394
    DOI: 10.1111/1467-8462.12360
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    References listed on IDEAS

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