The Nexus Between Trade Liberalization and Poverty: A Disaggregated Analysis

Ul-Haq, Jabbar; Wajid, Farwa; Visas, Hubert; Cheema, Ahmed Raza; Abbas, Shujaat

doi:10.55493/5002.v12i4.4481

Cited by 11 publications

(6 citation statements)

References 31 publications

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“…The average tariff rate declined gradually from 1990 (63 percent to 13 percent) to 2005. It shows how import tariffs have decreased over time, and this change reflects Pakistan's discussion with the World Trade Organization (WTO) about achieving national minimum tariffs [15,22,27]. Pakistan liberalized its trade policies gradually by reducing import tariffs and tariff slabs and eliminating non-tariff measures of trading.…”

Section: Pakistan Trade Policymentioning

confidence: 97%

Does trade liberalization increase child labor in rural Pakistan? A rural perspective

Khanum,

Ul-Haq,

Hye

et al. 2023

2576-8484

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Trade liberalization has differentiated effects on the regions (i.e., urban and rural). Concerning regional importance, we investigate the association between trade liberalization (TL) and child labor (CL), with special emphasis on rural areas, using micro-level data from 1990-2005 in rural Pakistan. Our estimation approach analyzes geographical differences in the effects of trade policy through province-level exposure to a reduction in import tariffs. We construct provincial panel data for the investigation of the liaison between trade liberalization and child labor in rural Pakistan. The feasible generalized least-squares (FGLS) method is utilized for empirical analysis. Pakistan is related to trade liberalization and the prevalence of child labor in rural areas. In Pakistan, trade liberalization has given rise to child labor in rural regions. It might be the reason that children who are living in rural areas assist their parents with household chores and on-farm. In rural Pakistan, trade liberalization leads to a rise in child labor. Our results hold up well against a range of control variables. The policy implication of the study is that the government should provide free education programs and packages to the poor, especially in rural areas, for the survival of their lives and then parents should send their children to school instead of work.

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Section: Pakistan Trade Policymentioning

confidence: 97%

Does trade liberalization increase child labor in rural Pakistan? A rural perspective

Khanum,

Ul-Haq,

Hye

et al. 2023

2576-8484

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show abstract

“…In the presence of CSD, Heteroskedasticity, and serial correlation, the Feasible Generalized Least Squares (FGLS) is a better choice among all competing models [79][80][81][82][83][84][85]. Therefore, the FGLS procedure is employed for examining the effects of EG on CO2E.…”

Section: Datamentioning

confidence: 99%

Exploring the liaison between industrial CO2 emissions and economic growth in ASEAN countries: A dis-aggregated analysis

Shahzad,

Ul-Haq,

Cheema

et al. 2023

5003

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Global warming has become an emerging and serious issue in the world, with adverse effects on human life and a threat to survival. Besides being a key contributor to a country's economic growth (EG), the manufacturing and construction sector (M&C) is also one of the major sectors that cause environmental degradation. We investigate the link between M&C’s CO2E and economic growth (both overall and sectoral growth) in the context of the Environmental Kuznets Curve (EKC) at aggregate and disaggregate levels in the Associations of Southeast Asia Nations (ASEAN), using data from 1995 to 2018. We employ the feasible generalized least squares (FGLS) and Panel-Corrected Standard Errors (PCSE) estimation techniques to examine the existence of the Environmental Kuznets Curve (EKC) at aggregate and disaggregate levels in ASEAN countries. We find evidence of an inverted U-shaped EKC at both the aggregate and disaggregate levels. After including other variables such as financial development, urbanization, foreign direct investment, and manufactured goods exports, our findings are robust and statistically significant. Our study suggests that policymakers should sanction such measures to reduce CO2 emissions from the M&C sector while maintaining economic growth.

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“…Ul-Haq, Khanum, & Raza Cheema, 2020;Ul-Haq, Wajid, Visas, Cheema, & Abbas, 2022;Wu, Ul-Haq, Zafar, Sun, & Jiang, 2019).…”

mentioning

confidence: 99%

“…The government gradually reduced tariffs on intermediate inputs and raw material imports by lowering the top rate. At the request of international financial institutions, tariff reforms were initiated in the early 1990s (Ul-Haq, Ashraf, Cheema, Hye, & Visas, 2023;Ul-Haq et al, 2022;Wu et al, 2019). The total number of tariff slabs decreased over eliminated.…”

mentioning

confidence: 99%

Depreciation to correct trade deficit- a misdirected policy: Empirical evidence from Pakistan

Hina

Hye²,

Ul-Haq

2023

5009

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A favorable trade balance is a positive indicator for emerging economies, and rectifying trade imbalances is paramount for every country. However, fixing trade deficits by depreciating the currency is a misguided policy approach. This study refutes this myth by computing the elasticity of Pakistan's exports, imports, and trade balance using the real exchange rate. It also examines the degree to which trade elasticities respond to changing trade regimes and exchange rate policies in Pakistan from 1982 to 2019. The structural break cointegration technique is used for empirical analysis. The vector error correction model (VECM) is also employed in the study to establish long-run and short-run relationships. The findings show that depreciation boosts import demand rather than export demand, hence worsening the trade balance. As a result, the study dismisses the presence of the J-curve in the case of Pakistan. According to this analysis, the exchange rate policy has little bearing on the economy's structure, and the necessity for a devaluation results from economic structural inefficiencies rather than trade-enhancing policies. The government and policymakers should reform the economy rather than let the currency depreciate.

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The Nexus Between Trade Liberalization and Poverty: A Disaggregated Analysis

Cited by 11 publications

References 31 publications

Does trade liberalization increase child labor in rural Pakistan? A rural perspective

Does trade liberalization increase child labor in rural Pakistan? A rural perspective

Exploring the liaison between industrial CO2 emissions and economic growth in ASEAN countries: A dis-aggregated analysis

Depreciation to correct trade deficit- a misdirected policy: Empirical evidence from Pakistan

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