IMPACT OF IMPORT TARIFF REDUCTION ON POVERTY IN IRAN

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RAHMATI D.; ZIBAEI M.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

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Journal: AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL) Year:2008 | Volume:2 | Issue:2 Page(s): 35-50

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Information Journal Paper

Title

IMPACT OF IMPORT TARIFF REDUCTION ON POVERTY IN IRAN

Author(s)

RAHMATI D. | ZIBAEI M. | Issue Writer Certificate

Keywords

IMPORT TARIFF REDUCTIONQ3

POVERTYQ3

COMPUTABLE GENERAL EQUILIBRIUMQ3

FGT INDEXQ3

Abstract

In this study, impacts of IMPORT TARIFF REDUCTION on POVERTY indices were investigated using COMPUTABLE GENERAL EQUILIBRIUM (CGE) approach which has been known as a firm approach to analyze the effects of a policy on economy as a whole. The underlying data base of this study is the social accounting matrix (SAM) of 2001 in which parameters of model were calibrated according to the households' survey including 2000 households organized into two groups (rural and urban). Although several indices are available to characterize POVERTY, the FGT (Foster - Greer - Thorbecke) was used in this study. Results revealed that in the base year, 25.43% of rural households and 36.7% of urban households were under the POVERTY line. Results also showed that POVERTY gap and POVERTY severity indices for both groups were continuously decreased with a 10%, 30%, 50% and 100% reduction on import tariffs, but improvement of two indices for rural households were more considerable than those for urban ones. Moreover, POVERTY gap index is expected to decrease by 4.01% and 3.33% for rural and urban households, respectively with 100% reduction of import tariff. At the same level of IMPORT TARIFF REDUCTION, POVERTY severity index is also found to decrease by 4.6% and 4% for rural and urban households, respectively. The impact of all levels of tariff reduction on headcount ratio index was realized to be the same (lower than 1%) for rural households but headcount ratio index for urban regions with a 100% IMPORT TARIFF REDUCTION, decreased by 2.33%.

Cites

ANALYSIS OF INCREASING RICE IMPORT TARIFF ON WELFARE AND POVERTY OF THE IRANIAN RURAL AND URBAN REGIONS

References

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APA: Copy

RAHMATI, D., & ZIBAEI, M.. (2008). IMPACT OF IMPORT TARIFF REDUCTION ON POVERTY IN IRAN. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), 2(2), 35-50. SID. https://sid.ir/paper/124317/en

Vancouver: Copy

RAHMATI D., ZIBAEI M.. IMPACT OF IMPORT TARIFF REDUCTION ON POVERTY IN IRAN. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)[Internet]. 2008;2(2):35-50. Available from: https://sid.ir/paper/124317/en

IEEE: Copy

D. RAHMATI, and M. ZIBAEI, “IMPACT OF IMPORT TARIFF REDUCTION ON POVERTY IN IRAN,” AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), vol. 2, no. 2, pp. 35–50, 2008, [Online]. Available: https://sid.ir/paper/124317/en

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