Acta Universitatis Danubius. Œconomica, Vol 10, No 2 (2014)

Abstract

Globalization is a buzz word that catches significant importance as a reform agenda post 1980. The current study is an attempt to analyze the impact of globalization on economic growth of Pakistan. The sample period for this study ranges from 1980-2009. For empirical analysis of the study, Autoregressive Distributive Lag model is employed while for data analysis Augmented Dicky Fuller test is applied. It is found that all the variables are stationary at first difference. The empirical findings of the study suggest that economic globalization in long phase of time increase growth in case of Pakistan economy, social globalization has negative impacts on growth and political globalization is insignificant which mean that it will not increase or decrease the growth of Pakistan economy. While in short run economic globalization at lag 1 and social globalization decrease the pace of growth. It is suggested to the government that as overall globalization helps in increasing the growth of economy therefore government should formulate such a policy that helps the economy to be globalized.