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The Impact of Trade Liberalization on Health: Evidence from Pakistan

Author

Listed:
  • Qadir, Nadia

    (MPhilScholar,Quaid-i-Azam University, Islamabad Pakistan)

  • Majeed, Muhammad Tariq

    (Assistant Professor, Quaid-i-Azam University, Islamabad Pakistan)

Abstract

The literature predicts both positive and negative health outcomes in developing economies as a result of increasing trade. Does openness to trade help to improve health indicators in the case of Pakistan? This study attempts to answer this question using data from 1975 to 2016. This study uses life expectancy and infant mortality as health indicators while trade to GDP ratio as trade openness indicator. For robustness analysis, the study uses international trade taxes, exports to GDP ratio and imports to GDP ratio. The empirical results of the study show that 1% increase in trade to GDP ratio significantly decreases life expectancy by 0.05 years and significantly increases infant mortality by 0.47 deaths. Thus, trade causes adverse effects on health indicators in the case of Pakistan.

Suggested Citation

  • Qadir, Nadia & Majeed, Muhammad Tariq, 2018. "The Impact of Trade Liberalization on Health: Evidence from Pakistan," Empirical Economic Review, Department of Economics and Statistics, Dr Hassan Murad School of Management, University of Management and Technology, Lahore, vol. 1(1), pages 71-108.
    • Handle: RePEc:ris:empecr:0004
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    Citations

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    Cited by:

    1. AIGHEYISI Oziengbe Scott & OLIGBI O. Blessing, 2019. "Trade Openness, Foreign Direct Investment And Life Expectancy In Nigeria," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 351-365, December.
    2. Muhammad Shahid Hassan & Samra Bukhari & Noman Arshed, 2020. "Competitiveness, governance and globalization: What matters for poverty alleviation?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3491-3518, April.
    3. Noman Arshed & Sidra Nasir & Muhammad Ibrahim Saeed, 2022. "Impact of the External Debt on Standard of Living: A Case of Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 321-340, August.
    4. Tehmina Zahid & Noman Arshed & Mubbasher Munir & Kamran Hameed, 2021. "Role of energy consumption preferences on human development: a study of SAARC region," Economic Change and Restructuring, Springer, vol. 54(1), pages 121-144, February.

    More about this item

    Keywords

    Trade Openness; Health Indicators; Life Expectancy; Infant Mortality;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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