Volume 18, No. 6, 2021
Globalization And Economic Growth Nexus: Evidence From Pakistan
Mukamil Shah , Khwaja Tariq Ziad , Muhammad Imad Khan , Zohaib Ali , Brekhna Ali
Abstract
The study highlights the impact of globalization on the economic growth of Pakistan. The study uses measures of globalization alongside other macroeconomic variables. It follows its effect on economic growth using advanced econometric techniques of (ARDL) cointegration approach using annual data from 1971 to 2021. The cointegration results indicated that GDP growth is cointegrated with Gross fixed capital formation, Education expenditure, Health expenditure, Development expenditure, and Trade openness which means there is a long-run relationship between GDP growth and trade openness along with other control variables. ARDL model results revealed a positive impact of gross fixed capital formation and education expenditure on economic growth in the long run. In contrast, health expenditure, development expenditure, and trade openness have a negative but significant impact on the economic growth of Pakistan.
Pages: 4695-4707
Keywords: Globalization, Macroeconomic variables, ARDL Technique & Economic Growth.