Doha Round of WTO and the Rice Sector of Pakistan

This study evaluates the impacts of the trade liberalization under Doha Round on basmati rice in Pakistan using a partial equilibrium model. Price integration analysis shows that there is a stable long-run relationship between farm gate price and wholesale price and between wholesale price and world price of basmati and non-basmati rice. Direction of influence is from world price to wholesale price and from wholesale price to farm gate price. The welfare analysis indicates a net welfare gain for the nation as a whole under the Doha Round agricultural trade liberalization.