The Impact of Globalization on Human Development Index: A Case of Pakistan

Abstract

The main objective of the study is to explore the short and long run relationship of globalization and human development index for 34 years during 1980 to 2014. In order to analyze economic, social and political dimensions of globalization separately for Pakistan economy. The time series data compiled from various sources including UNDP annual Human Development Reports, SPDC Social Development report, Pakistan Review 2005-06, World Bank and KOF. A semi-log model was used to explain the relationship, whereas some other models were also used to test the mobility of the variables. The test applied is ADF test and on the basis of ADF test results, the ARDL method of co integration was used to test long run impact of all independent variables on human development index. From the findings, we may conclude that globalization overall and social, political and economic globalization have positive impact on human development index for Pakistan, whereas some control variables like population density effects positively, and greenhouse gas emissions significantly and negatively affect the globalization. It is suggested that in order to improve the globalization, it is mandatory to focus on indirect effects of globalization and make necessary plans to reduce such emissions.