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PAKISTAN’S AGRICULTURAL TERMS OF TRADE: 1973-74 to 1983-84

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  • Shahid N. ZAHID
  • Syed Sajjad HYDER

Abstract

The main concern of this paper is the effect of relative price changes on the agricultural sector during 1973·84. Various terms of trade indices have been calculated. The first is the ratio of the prices received by agriculture for its produce to the prices paid by agriculture for consumer goods. The second is the ratio of the prices received for agricultural output to prices paid for agricultural inputs. Both these indices have been calculated using domestic and international prices. Adjustment have also been made to account for changes in per capita incomes overtime. To analyse regional differences in the terms of trade, indices have been calculated at both the national and provincial levels. Two important conclusions have emerged from the results. First, there is not much difference between the term. of trade under regulated (pre-1977) and de-regulated (post-1977) price regimes. Second, regional inequalities in the agricultural sector have not reduced significantly over the period under consideration.

Suggested Citation

  • Shahid N. ZAHID & Syed Sajjad HYDER, 1986. "PAKISTAN’S AGRICULTURAL TERMS OF TRADE: 1973-74 to 1983-84," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 5(2), pages 91-143.
    • Handle: RePEc:pje:journl:article1986winv
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    File URL: http://aerc.edu.pk/wp-content/uploads/2017/03/1st-paper-Page-91-143.pdf
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    Cited by:

    1. Khan, Abdul Aleem & Hyder, Kalim, 2005. "Agricultural Terms of Trade in Pakistan," MPRA Paper 85189, University Library of Munich, Germany.

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