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National and Regional Impacts of Increasing Non-Agricultural Market Access by Developing Countries – the Case of Pakistan

Author

Listed:
  • Butt, Muhammad Shoaib

    (Australian Government Department of Health and Ageing, Policy and Evaluation Branch, Level 8, Alexandra Building, Woden, ACT 2606)

  • Bandara, Jayatilleke S.

    (Department of Accounting, Finance and Economics, Griffith Business School, Griffith University Nathan, Brisbane, QLD 4111, AUSTRALIA)

Abstract

The US, the EU, Brazil and India met in Germany in June 2007 with a view to bridging differences between developed and developing countries on the Doha Round of trade negotiations. However, the talks broke down because of disagreement on the intertwined issues of agricultural protection and Non-Agricultural Market Access (NAMA). This study uses the first regional computable general equilibrium (CGE) model of Pakistan to evaluate the national and regional impacts of increasing NAMA as per two actual proposals of the US and the EU and Brazil and India at the 2007 meeting. The results suggests that overall benefits to Pakistan’s economy—in terms of increased exports and real GDP—will plausibly be higher under the NAMA proposal advocated by the US and the EU than that advanced by Brazil and India. However, inter-industry inequalities in Pakistan and the existing regional disparities between the largest region and the three smaller regions of the country are projected to be higher under the proposal of the US and EU. Drawing on the results of the CGE simulations, the study puts forward a NAMA proposal which can be beneficial and acceptable to both developed and developing countries. A breakthrough in NAMA may also break the impasse over the agricultural issues because of the interdependence of the two issues.

Suggested Citation

  • Butt, Muhammad Shoaib & Bandara, Jayatilleke S., 2008. "National and Regional Impacts of Increasing Non-Agricultural Market Access by Developing Countries – the Case of Pakistan," Economic Analysis and Policy, Elsevier, vol. 38(2), pages 277-311, September.
    • Handle: RePEc:eee:ecanpo:v:38:y:2008:i:2:p:277-311
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    More about this item

    Keywords

    Tariff cuts; Doha Round; Non-Agricultural Market Access; regional disparities; Pakistan;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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