Impact of Globalizationon - the Welfare State of Pakistan

Impact of Globalizationon The Welfare State of Pakistan

A thesis submitted

By

Faizan Hussain (8141)

To

Department of Business Administration

In partial fulfillment of

The requirement for the

Degree of

MASTER OF BUSINESS ADMINISTRATION

In

Finance

This thesis has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Syed Ali Raza

Advisor

Syed Ali Raza

Manager Research

Acknowledgment

Firstly, I would like to express my sincere gratitude to my supervisor Mr. Syed Ali Razafor the continuous support in completing my Thesis and related research, for his patience, motivation and immense knowledge. His guideline helped me in all the time of research and writing of the thesis. I could not be able to complete it without his advisory. Besides my advisor, I would also like to thank to Mr.Arshiyaan for their valuable guidelines related to my research work. I thank my class colleagues for the stimulating discussions, their views and suggestions and for all the fun we have had in our entire session of Thesis. Last but not least, I would also like to thank my parents and siblings. They were always supporting me and encouraging me with their best wishes including my Manager for approving my casual leaves for the Thesis work.

Table of Contents

Acknowledgment i

Abstract iii

Chapter # 1 1

Introduction 1

1. Introduction 2

1.1 Background 2

1.5 Scope of the Study 4

1.6 Limitation of the Study 5

Chapter 2 6

Literature Review 6

2. Literature Review 7

2.1. Theoretical Background 7

2.2. Empirical Studies 9

Chapter 3 18

Methodology 18

3. Methodology 19

3.1 Research Approach 19

This examination has based upon quantitative exploration procedure includes the observational investigation of gathered information strategies It is an examination connected on the numerical type of information The gathered information changed over in to numbers to determine it endurably. This methodology is connected when discoveries of finding of the examination will be recognized is connected when discoveries of finding of the examination will be recognized by measurable strategy the study instrument updated was further presented by distinctive industry experts Likert scale of five point was produced for everything that mirrored the level to which strategies utilizes by the buyer to chosen and participated in association with supplier were measured critical to their sourcing exercise or the level to which the relationship were fruitful in helping the buyer accomplish its objective. 19

3.2 Research Purpose 19

3.3 Research Design 19

3.4 Data Source 19

3.5 Target population 20

3.6 Sample Size 20

3.7 Collection Techniques/Tools Data 20

3.8 Data collection instrument 20

3.9 Statistical Techniques 20

Abstract

In the research of explanatory analysis the purpose of this exploration is to identify the impact of globalization on welfare state ofPakistan. For this purpose data over the period 1967 to 2014 is used to empirically investigate the relationship between globalization and welfare of the state. Welfare effort is studied in termsof jointly public spending and taxation. Total trade, imports, foreign direct investment, and financial market integration are the variables for the measurement of globalization. Thestudy identifies the benefits and drawbacks of globalization for the welfare of the stateof Pakistan. This research will help the state of Pakistan to make suitable policies in order to reduce the effect of globalization.

Keywords: Public Spending, taxation, trade, imports, foreign direct investment.

Chapter # 1

Introduction

1. Introduction

1.1 Background

The government which spends on goods and services for the welfare of the public of the state is termed as welfare state. In this paper we determined welfare of the state as public spending, social service provisions, income transfer programs and taxation. Government do public spending from its earnings and it includes spending on the basic needs of the public like food, education, employment, health, safety, social services and income transfer programs. The government major earnings are generated by its taxation system so therefore they collect taxes from individuals, AOPs and companies which make them able to spend on public welfare. On the other hand, welfare of the state is interrelated with globalization. Globalization has the impact on the whole of the economy of the country in terms of social, cultural, political and economic aspects. It is defined as a process of rapid economicintegration among countries driven by the liberalization of trade, investment and capital flows, as well as technological change [Torres, R (2001)]. Globalization has increased its Importance