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African and Asian Studies �5 ( �0 �6) 347-37�
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AFRICAN AND
ASIAN STUDIES
Trade Openness, Malnourishment and Income
Inequality in South Asia
Muhammad Zakaria
Assistant Professor, COMS ATS Institute of Information Technology (CII T),
Chak Shahzad, Islamabad, Pakistan
mzakaria80@hotmail.com
Xi Junyang
Professor of Finance, Shanghai University of Finance and Economics (SHUFE),
Shanghai, P. R. China
junyang@mail.shufe.edu.cn
Bashir Ahmed Fida
Assistant Professor, Modern College of Business and Science, Muscat, Oman
bashir@mcbs.edu.om
Abstract
The paper empirically examines the effects of trade liberalization on undernourish-
ment and income inequality in South Asian countries (SACs). For empirical analysis
data is collected for the period 1972-2013 for five South Asian countries which include
Bangladesh, India, Nepal, Pakistan and Sri Lanka. Panel fixed effect technique is used to
estimate the model. The estimated results reveal that undernourishment has decreased
while income inequality has increased in the region after liberalization. Economic
development has reduced both undernourishment and income inequality. The results
also endorse the role of agriculture factors in reducing undernourishment and the role
of education, urban bias, and political democratization in reducing income inequality
in SACs. These results are robust to alternative equation specifications and openness
measures. The results provide some important policy implications. It is suggested that
South Asian countries have to cope with the problem of malnourishment with high
agriculture development and economic growth.