Pakistan's military, which has directly controlled the country's
affairs for more than half of its post-independence history and
which often retained real political power even during periods of
democratic rule, has played a significant role in trade
liberalisation. Regional disparities have increased since the
beginning of major trade liberalisation attempts in the 1980s and
at present, regional conflicts and the associated regional
disparities are extremely high. The authors critically review the
country's post-independence political economy of trade
liberalisation, the resulting structural change and the story of
regional disparities, identifying possible relations with political
regimes. Using a regional computable general equilibrium (CGE)
model, the effects of trade liberalisation on regional disparities
are quantitatively examined, with an emphasis on the key export
industries at a national level and on the relative output and
employment growth at a regional level. In the first study to
distinguish a possible link between trade liberalisation and
regional disparities under dissimilar political regimes, such as
autocracy and democracy, Butt and Bandara use Pakistan as a case
study to draw broader lessons for other developing countries. This
book will be of interest to academics, economists, political
analysts and policymakers interested in development economics in
general and South Asia in particular.
General
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