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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, University of Management and Technology, Lahore, vol. 1(1), pages 71-108.
  • Handle: RePEc:ris:empecr:0004
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    File URL: https://ojs.umt.edu.pk/index.php/eer/article/view/136/49
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    More about this item

    Keywords

    Trade Openness; Health Indicators; Life Expectancy; Infant Mortality;

    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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