Poverty is still a major problem in Pakistan. (...) We have long known that agricultural growth is closely related to poverty reduction. Recent studies (...) provide massive statistical evidence of this relationship. Rural growth and agricultural growth have a major effect on poverty reduction;...

This paper primarily focuses on the effects of cotton prices on rural poverty in Pakistan. Domestic seed cotton prices are found to move closely with their export values based on world markets since 1990 and declined in real terms by about 20 percent in the late 1990s, taking world price...