The concerns over different domestic policies, i.e. domestic tax policy reforms, domestic trade liberalization etc., are very critical for South Asian countries in the changing global scenario. Theories and a number of empirical literatures have suggested that trade liberalization is good for economic growth. However, the aforementioned argument has also been subject to criticism. Despite the existing dispute, trade liberalization remains one of the critical agendas for South Asian countries. South Asia is considered as the most protected region of the world. At the same time, there is no denying the fact that import tariff is the major source of revenue generation for the governments of South Asian countries. Therefore any further liberalization can significantly restrain government’s revenue generation. Emphasis on other direct taxes has been suggested in a large number of literatures to incur the revenue loss. It has also been argued that liberalization is capable to augment the consumer welfare despite the fact that domestic producers are exposed to fierce foreign competition. Given these backgrounds, the objective of SANEM is to address the issues of domestic policy reforms and their impact on poverty using the appropriate modeling techniques. |
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