Impact of Globalization on Economic Growth: Evidence from Pakistan

Abstract

The main purpose of the present study is to analyze whether or not globalization affects economic growth in Pakistan. Time series data was collected from Pakistan covering the time period from 1990-2019. A time series Autoregressive Distributed Lag model is used to establish long-run and short-run relation between economic growth and globalization. Error Correction Model is also used to check the short run and long run relationship among the economic growth and globalization. For directional relationship, the Granger Causality test is being employed. The conclusions of the study showed a negative and significant association between Economic Globalization and Growth. On the other hand, there is positive and significant association between Political Globalization and Growth. While the relationship between Social Globalization and Growth was founded positive and significant.