The impact of globalization, foreign direct investment and trade openness on poverty: a case study of Pakistan

Shakil Ahmad, Imran Khan
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引用次数: 2

Abstract

Introduction. The central purpose of this study is to estimate the impact of globalization on poverty in Pakistan. Poverty is world massive curse in the previous and present years. Different organizations and institutions of the world are struggling to eliminate it from the world. Globalization and poverty is corresponding in the world and similarly in Pakistan. Materials and methods. We used time series data from 1970 to 2019 and assigned autoregressive distributed lag (ARDL) model approach to take out empirical results which indicate that Foreign Direct Investment, Trade Openness, and Gross Domestic Product. The ARDL model is one of the most common dynamic unrestricted model in econometric literature. Results. We summarize that globalization has dominant positive influence on poverty and economic growth and considerably decreased level of poverty in Pakistan. Improving trade openness, FDI, and GDP are the central and dynamic for reducing poverty in Pakistan. It indicates that there is tight association between globalization and poverty in the context of Pakistan. Conclusions. This study proposes that utilizing globalization as an instrument and putting together such policies that primarily for the poor’s will help government to eradicate poverty. Although liberalization has contributed to poverty reduction, most of the developed countries have not so much liberalized their economies by maintaining their immigration laws, which discourage the immigration of labor from developing countries including Pakistan. Therefore, we would like to present the following recommendations for policymakers. Pakistan trade is still limited to specific countries. Pakistan has needed to explore its trade to other countries markets. The government should grab measures to revise its immigration laws, structural reforms, policy regarding trade openness, import exports and poverty at macro level, because immigration laws play a very crucial role and the impact of trade openness on poverty is the most significant one. Pakistan should pay some considerable attention to employment creation.Pakistan should pay reasonable interest to improve law and order situation to captivate international business community to invest in Pakistan. Pakistan trade is still limited to specific countries. Pakistan has needed to explore its trade to other country markets.
全球化、外国直接投资和贸易开放对贫困的影响:以巴基斯坦为例
介绍。本研究的中心目的是估计全球化对巴基斯坦贫困的影响。在过去和现在,贫困是世界的巨大诅咒。世界上不同的组织和机构都在努力将其从世界上消除。全球化和贫困在世界上是相对应的,在巴基斯坦也是如此。材料和方法。本文使用1970 - 2019年的时间序列数据,采用自回归分布滞后(ARDL)模型方法,得出外商直接投资、贸易开放和国内生产总值的实证结果。ARDL模型是计量经济学文献中最常见的动态无限制模型之一。结果。我们总结说,全球化对巴基斯坦的贫困和经济增长产生了主要的积极影响,并大大降低了贫困水平。改善贸易开放、外国直接投资和GDP是巴基斯坦减少贫困的核心和动力。它表明,在巴基斯坦的情况下,全球化与贫困之间存在着密切的联系。结论。本研究提出,利用全球化作为一种工具,并将这些主要针对穷人的政策放在一起,将有助于政府消除贫困。虽然自由化有助于减少贫困,但大多数发达国家并没有通过维持其移民法来实现经济自由化,这些移民法阻碍了包括巴基斯坦在内的发展中国家的劳动力移民。因此,我们想向政策制定者提出以下建议。巴基斯坦的贸易仍然局限于特定国家。巴基斯坦需要开拓与其他国家的贸易市场。政府应该抓紧措施,从宏观上修改移民法、结构改革、贸易开放政策、进出口和贫困政策,因为移民法起着非常关键的作用,而贸易开放对贫困的影响是最显著的。巴基斯坦应该相当重视创造就业。巴基斯坦应该付出合理的代价,改善法律和秩序,吸引国际商界来巴投资。巴基斯坦的贸易仍然局限于特定国家。巴基斯坦需要探索与其他国家市场的贸易。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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