Contribution of International Trade in Human Development of Pakistan

Abstract

Very few studies have attempted to examine the relationship between international trade and human development. Some panel and cross-section studies have been done, but mostly Pakistan has not been included. This study examines for the first time ever the effect of aggregate and disaggregate trade on human development in Pakistan by using annual time series data from 1980 to 2013. This study contains five models in which human development with (a) total trade, (b) aggregate exports, (c) aggregate imports, (d) exports of primary commodities, semi-manufactured goods and manufactured goods and (e) imports of consumer goods, imports of capital goods, industrial raw material of consumer goods and industrial raw material for capital goods is considered. Cointegration test has been applied to check the long-run relationship between human development and trade. Sensitivity analysis confirms that initial results are robust. Causality analysis has also been done for the causal relationship between international trade and human development.

The criticality of ICT-trade nexus on economic and inclusive growth

“…Their outcomes show that trade leads to higher standards of living in flexible economies, but not in rigid economies (Razmi & Yavari, 2012). Likewise, Zahonogo (2016) used the pooled mean group (PMG) estimator to explore the effect of trade on economic growth in 42 SSA countries from 1980 to 2012 and reported that trade openness has a positive impact on growth in one group and a negative relationship in another with subsequent distortion in income distribution (Adhikary, 2011;Jawaid & Waheed, 2017). Another strand finds that openness to trade has no impact on growth (Eris & Ulas an, 2013;Were, 2015).…”

“…Empirical findings on the impact of trade on inclusive growth are mixed. While some studies show that trade improves socio-economic development (Dollar & Kraay, 2004;Hartmann & Hidalgo, 2017;Nourzad & Powell, 2003;Razmi & Yavari, 2012), others argue that trade distorts economic structures by tilting employment to skilled labor and capital which widens inequality gap (Jawaid & Waheed, 2017;Melitz, 2003;Milanovic & Squire, 2005).…”

The Contribution of Human Capital in Aggregate and Sectoral Production: Evidence from Pakistan

“…To check the consistency of estimated coefficients estimated earlier, the long-run coefficients of aggregate and sector-wise models estimated through DOLS (Jawaid, Raza, Mustafa, & Karim, 2016; Jawaid & Waheed, 2017) are presented in Table 4.…”

Impact of Globalization on Human Development: A Panel Data Analysis of Selected South Asian Countries

“…The studies discussed above presented mixed results. Some investigations evaluated a positive impact of globalization on human development (Eusufzai, 1996;Figueroa, 2014;Jawaid & Waheed, 2017;Olagunju et al, 2019;Yanikkaya, 2002) while other studies observed a negative relationship between globalization and human development (Dowrick & Golley, 2004;Sabi, 2007;Salvatore & Wiley, 2004). This study attempts to identify whether the discussed relationship has any positive or negative significance for developing countries.…”