GLOBALIZATION, GROWTH & POVERTY ALLEVIATION IN PAKISTAN

Abstract

Globalization hampers the growth level of the countries, then this raising growth rate helps to improve the living standard and reduce inequalities among the masses, that finally downgrade the poverty level of the nations, is the way that global institutions favor it. The debate on rightness of the measures taken for globalization to the socioeconomic development of emerging economies is prolonged and still controversial too. This paper attempts to address the impacts of measures taken for globalization (trade liberalization)specially with reference to its benefits and harms associated to growth and poverty alleviation in Pakistan. In order to examine the effects of trade liberalization on output growth and poverty, Toda-Yamamoto Granger causality is used, by taking data of last 30 years i.e. 1985 to 2015. The empirical findings and review of literature done in the study is consistent with the judgment of prior studies as concluding the hybrid type effects of globalization to the socio-economic conditions i.e. growth and poverty, of Pakistan.