The Role of Globalization in Employment Generation: Evidence from Pakistan

The main objective of this research paper is to measure the impact of globalization on the situation of employment in Pakistan. Globalization is both cost- effective and depends on the socio-economic and political factors of the country. We used secondary time series data for the period 1972-2014 and different statistical techniques such as Johannes co-integration and Error Correction Model (ECM) were used to analyze relationship between selected variables. Our results show that globalization has had a significant and positive impact on job creation, while the social and political dimensions of globalization have adverse effect on employment both at home and abroad. Two variables such as workers' remittances and foreign direct investment have positive relationship with employment generation. So we recommend that the Government of Pakistan must provide required fiscal incentive for attracting foreign direct investment and workers' remittances.