Authors: M. Naveed Iftikhar, Iqtidar Ali Shah, Sami Ullah
Addresses: Ministry of Finance, Government of Pakistan, Q-Block, Pak Sectt., Islamabad. ' COMSATS Institute of Information Technology, Abbotabad, NWFP, Pakistan. ' Department of Economics, University of Gujrat, Gujrat, Pakistan
Abstract: This paper attempts to investigate impact of globalisation and economic reforms on human development in Pakistan from 1980 to 2007. Pakistan has made improvements in education and health sector while deterioration has been found in income distribution. An empirical model has been developed to estimate the impacts of foreign direct investment (FDI), trade openness (TOP), financial sector liberalisation (PSC) and private investment (PI) on human development index (HDI) for the period under discussion. Long-run relationship between the variables has been found by applying Johanson|s cointegration technique after finding the series I(1). Error correction model (ECM) has been estimated to explore short- and long-run impacts of the variables on HDI. The results indicate that FDI and PI are significant in short run and long run and PSC is significant in short run while TOP is insignificant in both short run and long run. ECM term indicates convergence of the model.
Keywords: economic reforms; economy; Pakistan; education; health services; income distribution; foreign direct investment; trade openness; financial sector liberalisation; private sector credit; private investment; human development index; Soren Johansen; cointegration techniques; error correction models; variables; convergence; globalisation; business advancement.
Journal for Global Business Advancement, 2010 Vol.3 No.1, pp.45 - 59
Published online: 20 Apr 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article