The Impact of Globalisation on Economic Growth of Pakistan

Mohammad Afzal

Abstract


Globalisation has diverse definitions and concepts.1
Globalisation has many facets and has a variety of social, political and
economic implications. This term introduced in early 1980, which never
precisely defined, is a frequently used word in the political economy.
It simply means growing integration of the national economies, openness
to trade, financial flows, foreign direct investment and the increasing
interaction of people in all facets of their lives. Globalisation also
implies internationalisation of production, distribution and marketing
of goods and services. International integration implies the adoption of
common policies by the individual countries. Between 1870 and 1914, the
world was integrated into a single word economy dominated by one power:
Great Britain. The government functions were limited and faced many
constraints like gold standard and lack of freedom to pursue easy
monetary policy. Later governments were burdened by performing many
functions like achievement of macroeconomic goals—full employment,
economic growth and price stability. Freedom of using macroeconomic
policies resulted in greater integration of national economies but at
the same time they led to international disintegration and
interdependence. Streeten (1998) argues that today global market forces
can lead to conflict between states, contributing to international
disintegration and weakened governance. Before 1914, the world was more
integrated than it is today but it did not prevent the First World
War.

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DOI: https://doi.org/10.30541/v46i4IIpp.723-734

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