Abstract
Social exclusion is blockage or denied access of people from various rights, resources and opportunities (democratic participation, employment, housing, employment etc) that are normally available to other members of society. The outcome of social exclusion is limited economic, political and social life creating a barrier in the way of potential growth and development. The social exclusion of people is a big challenge for policy makers and researchers now days. This study is an attempt to find out the effects of trade liberalization and tax revenues on socially excluded people of Pakistan covering the time span of 1980-2016. The auto regressive distributed lag model is applied to determine the long and short run relationship among the variables. The findings of the study reveal that trade liberalization and per capita income has vital role to decrease the level of social exclusion while increase in tax revenues is increasing the social exclusion. Further globalization of the economy is suggested for social inclusion of the people.
Highlights
Social exclusion was conceptualized by Sen (2000), while its roots go way back to the time of Aristotle
The current study empirically tested the macroeconomic perspective of the impacts of globalization and taxation on social exclusion in Pakistan
The autoregressive distributed lag (ARDL) approach was applied to find out the long-run and short-run relationships among the variables
Summary
Social exclusion was conceptualized by Sen (2000), while its roots go way back to the time of Aristotle. This concept was introduced in France in 1974 when Rene Lenoir used the term “Les Exclus”, which refers to those segments of the society who are not able to secure their place in the salary nexus. Their chances to participate in the society are limited and/or not supported by the state. The International Labor Organization (ILO) defined social exclusion as being “a state of poverty in which individuals cannot access the living conditions which would enable them to satisfy essential needs (food, education, health) and to participate in the development of society in which they live.”
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