Estimating the effects of WTO on cropping pattern and farm income

Hassan, I.; Bakhsh, K.; Maqbool, A.

Estimating the effects of WTO on cropping pattern and farm income

2006

Hassan, I. (Adaptive Research, Govt. of Punjab, Lahore (Pakistan)) | Bakhsh, K. | Maqbool, A.

This paper analyzes the impacts of trade liberalization on the cropping pattern and farm income with special reference to the irrigated areas of Pakistani Punjab. For this purpose, three divisions were selected i.e. Lahore, Faisalabad and Multan. The study in hand employs Linear Programming (LP) model to determine cropping pattern, and farm income in these divisions. To visualize the effects of trade liberalization, national farm gate prices and the World Bank farm gate prices of 2003 are used. Results of the study indicate that farm income would increase Lahore division by 45.98%. Sugarcane, potato, cotton and maize are the crops that would not compete. In case of Faisalabad division, the increase in farm income was recorded as 81.33% and that of Multan division 62.13%. Results depict that trade liberalization could increase farm income in all three divisions due to increased in production of those crops in which Pakistan has comparative advantages given that o ther factors remain constant.

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