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GTAP Resource #4076

"Structural Transformation, Trade Policies and Income Distributional Impacts: A CGE Model of India"
by Gurumurthy, Mythili

India has been witnessing major transformation in the economy in the last decade or so and structural changes are distinctly visible in both the production and consumption pattern. The liberalisation and globalisation process which India initiated in the nineties have been carried on successfully and this has taken the economy to higher growth path of more than 8% GDP growth. Even the recent global financial crisis has not impacted the economy to a great extent as it was expected to. However there is no substantial achievement on the income distributional front and there are no convincing studies to empirically demonstrate the impact of various domestic and global policies of India on income distribution. In this back drop, this study proposes to run alternative scenario of trade policies on income accounts of different percentiles of households and also between rural and urban sectors. The data pertain to SAM of 2006-07 for India and the study will use CGE model based on the approach of Dervis, de Melo and Robinson (1982). A distinguishing feature of this approach is that it treats the domestically produced good and traded good in a particular sector as imperfect but close substitutes using the Armington specification. Built on the static model, this study will adopt dynamic recursive modelling with the use of GAMS software to simulate for the year 2020 keeping the base year as 2006-07.

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Created: (4/5/2013)
Updated: (5/14/2013)
Visits: 1,576
- Dynamic modeling
- Economic development
- Economic growth
- Domestic policy analysis

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