Title: Impact of Globalization and Liberalization on Growth, Employment and Poverty
Abstract: While globalization is viewed as a key to future economic development, it is also argued that it increases poverty, threatens employment and living standards of the poor. Like many other developing countries, Pakistan also attempted to integrate its economy in the global economy through liberalizing its investment and trade regime within the framework of the IMF and the World Bank. A review of literature indicates that although a number of cross-country studies have shown a positive association between trade openness and economic growth, the recent work suggests that openness has no robust link with long-term growth. Thus, positive effects of liberalization on growth remain controversial. Evidence shows that despite numerous highly attractive incentives offered to foreign investors, Pakistan’s performance in attracting the foreign investment has been poor. Similarly, despite the intensive trade liberalization, the trade performance has been dismal. The stabilization initially achieved proved to be short-lived due to the slippages in reform process occurred in the form of spread of tax exemption and concession leading to implementation of further stabilization measures. The repeated attempts to stabilize the economy together with liberalization and persistent devaluation of domestic currency pushed the economy in a vicious circle. The lowering of tariff rates led to a considerable loss of revenue and resulted in stagnant tax GDP ratio, resulting in reduction in…/…
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
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Cited By Count: 1
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