Tariff Cuts and Farming Boosts Threaten Sri Lankan Workers' Livelihoods
The scientists used a fancy computer model to see how lowering taxes and making farming more efficient would affect Sri Lanka's economy. They looked at how different parts of agriculture and other industries would interact. By studying how people spend money and where things are made in 2010, they built a computer model to play with different scenarios. When they made farming more efficient in some areas, like growing rice or raising animals, those industries grew bigger. But because farming was more efficient, they needed fewer workers. When they lowered taxes on particular goods, households didn’t benefit overall and had some negative consequences.