impact of changes in tobacco demand in Bangladesh

Details

• Alternative Title:
  Margin J Appl Econ Res
• Personal Author:
  Husain, Muhammad Jami ; Khondker, Bazlul Haque
• Description:
  In Bangladesh, where tobacco use is pervasive, reducing tobacco use is economically beneficial. This paper uses the latest Bangladesh social accounting matrix (SAM) multiplier model to quantify the economy-wide impact of demand-driven changes in tobacco cultivation, bidi industries, and cigarette industries. First, we compute various income multiplier values (i.e. backward linkages) for all production activities in the economy to quantify the impact of changes in demand for the corresponding products on gross output for 86 activities, demand for 86 commodities, returns to four factors of production, and income for eight household groups. Next, we rank tobacco production activities by income multiplier values relative to other sectors. Finally, we present three hypothetical 'tobacco-free economy' scenarios by diverting demand from tobacco products into other sectors of the economy and quantifying the economy-wide impact. The simulation exercises with three different tobacco-free scenarios show that, compared to the baseline values, total sectoral output increases by 0.92%, 1.3%, and 0.75%. The corresponding increases in the total factor returns (i.e. GDP) are 1.57%, 1.75%, and 1.75%. Similarly, total household income increases by 1.40%, 1.58%, and 1.55%.
• Subjects:
  Article Bangladesh SAM Demand-driven Interventions Input-output Tables Multiplier Model Multiplier Values Social Accounting Matrix Tobacco-free Economy Tobacco Consumption
• Source:
  Margin J Appl Econ Res. 10(1):55-85
• Pubmed ID:
  28845091
• Pubmed Central ID:
  PMC5568639
• Document Type:
  Journal Article
• Funding:
  CC999999/Intramural CDC HHSUnited States/
• Place as Subject:
  Bangladesh
• Volume:
  10
• Issue:
  1
• Collection(s):
  CDC Public Access
• Main Document Checksum:
  urn:sha256:9c95bc25764748ed20575f201fb026166b012c7f8d965894f5eb5e7801bb2405
• Download URL:
  https://stacks.cdc.gov/view/cdc/48178/cdc_48178_DS1.pdf
• File Type:
  [PDF - 468.86 KB ]