Impact of Globalization on Industrial sector growth In Pakistan
Keywords:Globalization, KOF index, Economic Growth, ARDL, Industrial Growth
Globalization is a multidimensional concept that affects the economic growth of different countries differently and within economies different sectors of the economy differently. The study examines the long and short effects of globalization on the industrial sector of Pakistan's economy. Globalization index is used for Globalization, time-series data for the years 1980 to 2015 is utilized. To check the stationarity used Augmented Dickey-Fuller (ADF) test. Auto-Regressive Distributive Lag (ARDL) has been applied to find the long and short-run association among industrial sector growth, globalization, and explanatory variables. After diagnostics, the error correction model evidenced the existence of long-run Co-integration Exits industrial sector growth and globalization. Globalization boosted the growth of and industrial sector in Pakistan.