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Case Study: Global economic crisis and poverty in Pakistan

Author

Listed:
  • Vaqar Ahmed

    (Planning Commission of Pakistan;)

  • Cathal ODonoghue

    (Rural Economy Research Centre (RERC), Teagasc, Ireland)

Abstract

In this case study we adopt a macro-micro framework in order to evaluate the impact of the current global crisis on the Pakistan economy. We use a top-down approach to combine a static computable general equilibrium model with a microsimulation model. Our results suggest that between 2007 and 2009 the poverty headcount ratio is likely to have increased by almost 80 percent, from 22 to 40 percentage points. However, our results also show that this increase is attributable in part to the fuel and food crisis that preceded the financial crisis. Our results also indicate a differential impact, with wage increases for farm workers and a decrease in wages for skilled labour.

Suggested Citation

  • Vaqar Ahmed & Cathal ODonoghue, 2010. "Case Study: Global economic crisis and poverty in Pakistan," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 127-129.
    • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:127-129
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    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_36.pdf
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    References listed on IDEAS

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    1. Block, Steven A. & Kiess, Lynnda & Webb, Patrick & Kosen, Soewarta & Moench-Pfanner, Regina & Bloem, Martin W. & Peter Timmer, C., 2004. "Macro shocks and micro outcomes: child nutrition during Indonesia's crisis," Economics & Human Biology, Elsevier, vol. 2(1), pages 21-44, March.
    2. Jed Friedman & James Levinsohn, 2002. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," The World Bank Economic Review, World Bank, vol. 16(3), pages 397-423, December.
    3. Dorosh, Paul & Niazi, Muhammad Khan, 2006. "Social Accounting Matrix for Pakistan, 2001-02: Methodology and Results," MPRA Paper 2242, University Library of Munich, Germany.
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    Cited by:

    1. Rusmawati Said & Kamarul Hidayah Abdul Hamid & Nursyazwani Mazlan, 2020. "How Does Immigration Affect Wages and the Unemployment Rate in Malaysia? A Computable General Equilibrium (CGE) Approach," Asian Social Science, Canadian Center of Science and Education, vol. 16(11), pages 100-100, November.
    2. Fan Yang & Eddy Bekkers & Martina Brockmeier & Joseph Francois, 2015. "Food Price Pass‐Through and the Role of Domestic Margin Services," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 796-811, September.
    3. Bargain, O. & Herwig Immervoll & Andreas Peichl & Siegloch, S., 2010. "GINI DP 1: Distributional Consequences of Labor-Demand Adjustments to a Downturn. A Model-Based Approach with Application to Germany 2008-09," GINI Discussion Papers 1, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Syed Shoyeb Hossain & Huang Delin, 2022. "Measuring economic impact in Korea, Japan, India, China, and ASEAN considering agricultural sectors: a dynamic CGE approach based on GAMS," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 571-613, May.
    5. Ghamz-e-Ali Siyal & Asma Mohsin & Khalid Zaman, 2014. "Financial Soundness and Pakistan’s Economics Growth: Turn on the Light," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(9), pages 359-371, September.
    6. Vaqar Ahmed & Saad Shabbir, 2017. "Trade & Transit Cooperation with Afghanistan: Results from a Firm-level survey from Pakistan," Working Papers id:12279, eSocialSciences.
    7. Sehar, Zulfiqar, 2017. "How Economic Recession Effect The Corporate Philanthropy? Evidence From Pakistani Corporate Sector," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(1-2), September.
    8. Arief Anshory Yusuf, 2015. "External Shocks And Poverty: How Recession In Europe, Japan, And China Affects The Indonesian Poor," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 18(2), pages 207-228, October.
    9. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2012. "Distributional consequences of labor-demand shocks: the 2008–2009 recession in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 118-138, February.
    10. Hyevin Koo & Jinhwan Oh, 2019. "Crisis and poverty: With reference to Latin America," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 22(3), pages 247-257, September.

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