Impacts of Globalization on Exports of Pakistan

Abstract

The study examines the impact of globalization on the exports of Pakistan. Five years from 1965-1970 refer to Pre-Globalization and 2005-2010 as the post globalization period. Economic openness as indicator of globalization is measured for both time periods. Globalization is related to the openness of the economy in terms of trade liberalization, reduction in the trade barriers, and decrease in the tariffs. The measure of the degree of openness is used as the empirical evidence of the globalization in Pakistan. Secondly, the government’s trade policies during these periods are analyzed to see how it affected the openness of the country’s economy. Thirdly, linear regression is used to test hypothesis to find out the impact of openness on exports. Fourthly, the principal exports growth rate is analyzed for both periods. Lastly, conclusion and recommendations for the policy changes are given which would help Pakistan to achieve the export growth and adapting their policies to the global competitive environment.

Keywords: Globalization, Export, Pakistan

JEL Classification: A10, F01, F20