No abstract

This study has empirically investigated impact of globalization on aggregate and agricultural employment in Pakistan for the data period 1986-2017. Globalization is proxied by variables trade openness, foreign direct investment, workers’ remittances and exchange rate. Other explanatory variables are real GDP, gender based wage gap and labor force. The study has applied Johansen’ cointegration technique and Error Correction Model to estimate the long run and short run relationships. The findings of the study indicate that in the long run trade openness has negative whereas FDI has positive effect on aggregate as well as agricultural employment in Pakistan during the data period. Interestingly, exchange rate and workers’ remittances affect aggregate and agricultural employment differently. Other important finding is that real GDP and gender based wage gap also deteriorate aggregate and agricultural employment in Pakistan. The study concluded that globalization in the form of trade openness has not supported employment whereas FDI enhanced employment in Pakistan. Policy makers need to consider sector specific effects of globalization while designing policies to achieve inclusive growth in Pakistan.

This study has investigated the impact of globalisation on gender-based gaps in the labor market (GBGLM) of Pakistan for the period 1982-2017. Particularly, the study has estimated the impact of trade openness(OPEN), foreign direct investment (FDI), workers’ remittance inflows(WRI) and exchange rate(ER) on gender-based labour force participation rate differential (LFPRD) and wage differential (WD). The study has applied the Autoregressive Distributed Lag (ARDL) model and Johansen’s cointegration approach on two models estimated for LFPRD and WD. The error correction models (ECM) have confirmed an error correction mechanism as reflected by negative and significant coefficients of lagged ECM terms. The study has applied all relevant diagnostic tests to ensure the validity of empirical findings. The results of the study indicated that in the long run, OPEN reduced LFPRD and WD, whereas, FDI augmented LFPRD. ER depreciation decreased LFPRD and augmented WD. WRI also augmented LFPRD and WD. The study concluded that OPEN and Real GDP are prominent factors in reducing WD and LFPRD of Pakistan, whereas, FDI and WRI augmented LFPRD. This is a very important finding in the context of the stagnant real sector of Pakistan where agriculture and industry have performed lower than rapidly growing services sector of Pakistan. Since most of the exports emanate from the real sector of Pakistan, therefore, relatively more focus on real sector as compared to financial inflows can play a crucial role in reducing GBGLM of Pakistan. The policy implication based on results is that to reduce GBGLM of Pakistan, trade liberalisation with special focus on the commodity-producing sector is right policy option in Pakistan