Role Of Globalization In Pakistan

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2.2 Role of globalization and economic growth Syed etal. (2002) explains the global financial crisis in South Asia and the GE model is using to investigate its effects. The main objective of this study to generalize the economic crisis globally by using general equilibrium model and SMEs are to provide a detailed review of the sector. Using simple random technique is used for collecting four provinces data and using cross-sectional data from 400 SMEs were also collected. General inflation increased and decreased standard of living and purchasing power and it has negative impact on the development of SMEs. Globalization current research and business development of SMEs in Pakistan and economic recession highlighted the opportunities. Global…show more content…
The main objective of this study is to analyze the impact of Globalization on economy of Pakistan by using CGE frame work. They started with the comparative exercise of Globalization and it plays important role in reducing poverty in Pakistan. Linear expenditure system (LES) replaces the demand of system derived from Cobb-Douglas utility function. According to the results Globalization has significant impact on the economy of Pakistan. Shaikh (2009) describe the aim of this paper that is to express and analyze the relative impact of South Asian Free Trade Agreement (SAFTA) over the global economic welfare. This research analyzes the economic costs and benefits of Pak-India trade and exporting different types of consumer goods. In the first situation when there is normal trading relation with India it means that both countries will give the MFN (Most Favored Nations) status to each other. In the second scenario, there will be free trade between India and Pakistan and both countries will remove all tariffs and custom duties from each other’s imports. A result based on this research is that there will be net export benefits in Pakistan’s economy. And on the other hand the GTAP model cannot capture the dynamic effects of trade liberalization, which is a useful tool for generating relative static results. It also identifies that the industries will expand only in trade liberalization scenarios. The results suggest that Pakistan would experience the highest welfare gain under the combined policy. SAFTA allows the participating countries to gain large number of production, attain specialization, increase competitiveness and diversify their export basket. Malik, Chaudhry & Javed (2011) explains that Globalization is one of the major contemporary issues. Any country can

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