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GTAP Resource #6431

"How Tariff Reduction Impact Global Economy- A CGE Analysis of Wood Economy of Pakistan "
by Malik, Arshad Mahmood, Rizwan Muhammad and Khurshid Nabeela

Demand for wood is increasing with the rapid population growth in Pakistan. To cater for this rise in demand, Pakistan Government has decreased import duty on wood and products of wood in the country from 16 to 11 percent in finance bill of 2017.With this backdrop, this research quantifies the impact of reduced tariff duty of wood at
household level and economy wide by applying Commutable General Equilibrium model. MyGTAP model is standardized by applying GTAP Data base and latest available Social Accounting Matrix of Pakistan. This updated economic trade model is tailor made model for these types of analysis. The result shows an increase in wood imports by US$ 41million. There is a positive impact on Real GDP, household income, but Pakistan government income will decrease by 0.08 percent due to reduction in
tariff. Household analysis revealed that rural small farmers and non-farm workers’ timber demand in Pakistan will escalate by 10 percent in relations to other communities. Policy makers and planners can best utilize these results in planning and implementation process for improving effectiveness of policies.
Keywords: wood, GTAP, Pakistan, import du

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Other CGE Application
Status: Published
By/In: FWU Journal of Social Sciences
Date: 2020
Version: Vol.14, No.1, 1-14
Created: Malik, A. (6/22/2021)
Updated: Batta, G. (6/22/2021)
Visits: 411
- Dynamic modeling
- Trade and the environment
- Economic development
- Agricultural policies
- Domestic policy analysis
- The GTAP Data Base and extensions
- Asia (Southeast)

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