BS ECONOMICS

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Browsing BS ECONOMICS by Author "Abdul Rehman Kakar"

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    The Impact of Globalization and Economic Growth on the Income Distribution: A Case of Pakistan.
    (UMT, Lahore, 2020) Abdul Rehman Kakar
    The aim of this study is to find out the impact of globalization and economic growth on the income disparity for the case of Pakistan. The dependent variable of this study is Gini-coefficient (a measure of income inequality across the globe) and the independent variables are foreign direct investment, globalization, and square form of globalization, personal remittances, and a dummy variable. The sample size is of 27 years from 1987 to 2014 and the data is takes from world development indicator 2020. For empirical analysis the study uses autoregressive distributed lag order model for both long-run and short-run analysis. Some other diagnostic tests are also applied such are normality, variance inflation factor, descriptive stats, correlation of covariance and unit root test. The long-run results showed that there is positive and significant relationship between FDI and Gini-coefficient, the relationship between Gini-coefficient, globalization and square form of globalization is found to be negative but insignificant. There was both positive and significant relationship between Gini and personal remittances, and the relationship between Gini and dummy variable is found to be negative and significant. On the other hand, in the short run all the variables are found to have a negative relationship with Gini-coefficient except personal remittances, meaning that in the short run we do not have to bring any new reforms but rather we should focus on the long run goals.