Poverty-reducing or Poverty-inducing? A CGE-based Analysis of Foreign Capital Inflows in Pakistan
Published By: Pakistan Institute of Development Economics (PIDE) | Published Date: January, 01 , 2006Foreign capital inflows (FKI) help an economy by financing the imbalance between income and expenditure. However, their impact on poverty in the recipient economy is a controversial issue. In this study, the impact on poverty in two different scenarios is examined: (1) labour is homogeneous; (2) labour is heterogeneous. The Computable General Equilibrium model for Pakistan is used to conduct simulations in order to assess the impact of an increase in foreign capital on poverty both in the presence and in the absence of trade liberalisation.
Author(s): Rizwana Siddiqui, A. R. Kemal | Posted on: Feb 18, 2016 | Views() | Download (202)