Do Globalization and Employment Enhance Economic Growth in SAARC Nations?

Abstract

Globalization and employment rate are the major concerns for the ethical challenges in the economies. The economy’s performance gets highly suffered due to the distress situation due to globalization. That’s why globalization causes two folds on the economy with benefits and drawbacks for the economic condition of the SAARC countries. Our research aimed at exploring the impact of globalization and employment rate on economic growth for the period 19991 to 2019 under SAAR countries i.e. Pakistan, India, Bangladesh, Sir Lanka, and Afghanistan. We estimated the Pooled Mean Group (PMG) approach to find the long-term and short-term relationship. The findings indicate that globalization and employment and other controlled variables have a substantial effect on economic growth. The SAARC country should take effective policy steps to significantly expand and diversify its economic base by developing local skills and building up a stock of human capital resources and improving the economic situation.