Globalization and Employment: Evidence from Pakistan

Abstract

Globalization is one of the main contemporary issues. No country can survive in isolation. Globalization has both benefits and costs and the effects depend on the host country’s socioeconomic and political factors. Present study investigates the impact of globalization on employment in Pakistan. Globalization is represented by proxy variables such as trade openness, inflow of foreign direct investment and workers remittances. In addition to these proxy variables globalization index is also used. Empirical analysis is done by using time series data for the period of 1973-2009 by employing Johansen co-integration technique and ECM for short run analysis. Results show that foreign direct investment, workers remittances and economic dimension of globalization are creating employment opportunities not only in short run but also in long run in Pakistan, while trade openness and social and political dimension of globalization negatively affects the employment due to some external and internal imbalances in the country.

Cite this paper

@inproceedings{Malik2012GlobalizationAE, title={Globalization and Employment: Evidence from Pakistan}, author={Shahnawaz Malik and Imran Chaudhry and Hafiza Iffat Javed}, year={2012} }