Impact of Trade Liberalization on Employment: Review of SAARC Countries

Abstract

Globalization has become the buzzword for many economies today that fails them to think in isolation for their own good. Today, developing economies race to exploit maximum growth opportunities without ever considering social costs associated. One such cost can be seen on the level of Employment (Domestic Labour Demand). The objective of this study is to observe the effect of FTA on employment levels in the context of SAARC Countries including Pakistan, India, Bangladesh and Sri Lanka. Traditionally, positive impact has been observed of Free Trade on the level of employment in developed countries; whereas empirical evidences have suggested negative relationship in case of developing countries.

Keywords: Economic Globalization, Multilateral Trade, Labour Demand, SAARC Economies

JEL Classification: F1, F66, F68