Effects of Globalization on Economic Growth: A Case Study of Pakistan

The study examines the impact of total exports of goods and services, imports of goods and services, Foreign Direct Investment net inflows, GNI per capita, and inflation on the economic growth of Pakistan. The empirical analysis is conducted by using time series data from (1980-2012) from Pakistan. The ARDL technique is used to detect the relationship between exogenous variables and endogenous variable. The estimated results show that explanatory variables Exports, GNI and FDI have positive and significant impact on the economy of Pakistan. The results also show that an increase in the exports of Goods and services, the Foreign direct investment so that output of the country is boost up. Similarly, Inflation and Imports has negative influence on the economy of Pakistan. It concludes that international trade may play an important role to improve the economy of Pakistan. Keywords: Economic growth; Imports; Exports; Inflation; Pakistan. DOI : 10.7176/IAGS/79-02 Publication date: January 31 st 2020