Urbanization refers to the migration of rural people to urban centers in search of better jobs. Urbanization and growth go together; no country has ever reached middle-income status without a significant population shift into cities. Urbanization has strong association with unemployment, economic growth, poverty, infrastructure, crimes, health, socioeconomic conditions and education. In 2050, most of the urban population of the world will be concentrated in Asia (52%) and in Africa (21%). A simple and modest model provided reasonable results. Increase in literacy is a decisive factor that has significant impact on increasing urban population. Per capita GDP growth also positively influences the urban population. Age-structure is too an important determinant of migration and urbanization. It is an open secret that generally young persons have gone abroad. Specification and diagnostics test supported the model which reveals appropriateness and statistical soundness of the model. Serious heed is paid to delimitation of cities to make them manageable and governable. Agriculture is provided sufficient resources to discourage migration to cities.
Trade comprises both merchandize and services trade. However, the former has over eclipsed the latter. Today services trade has also emerged an important component of international trade. Recent studies show that services trade is rapidly growing which assigns relative importance to services trade in developing economies. This study focused on Pakistan and empirically compared services and merchandise trade for the period 2001-2016. Model-I provided robust results. Merchandised trade has positive and significant impact on economic growth of Pakistan. Trade promotion not only depends on domestic economic conditions but also on favourable global economic scenario. Model-II estimation results are visibly different from that of Model-I. Services trade has negative impact on economic growth. Services exports have remained well below services imports that culminated in negative impact on economic growth. Pakistan policy makers may address the services trade seriously in order take care of adverse services trade balance that could be made possible by exploring weak areas of services exports with emphasis on innovation and information technology development.
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