Open AccessHow Do Human Capital and Trade Liberalization affect the Labor Supply in Pakistan? A Time Series Analysis
Author(s) -
Sheneela Altaf,
Muhammad Zahir Faridi
Publication year - 2019
Publication title -
review of applied management and social sciences
Language(s) - English
Resource type - Journals
eISSN - 2708-3640
pISSN - 2708-2024
DOI - 10.47067/ramss.v2i2.19
Subject(s) - openness to experience , economics , human capital , liberalization , free trade , labour economics , international economics , trade barrier , market economy , psychology , social psychology
Human capital and Trade liberalization are very important for smooth economic growth which gives birth to new employment opportunities that increase labor force participation in all sectors. Both have positive impact on labor supply and overall economy of Pakistan. Human capital has shown positive relation to trained and efficient labor force of the country and trade liberalization strategy. Transformation of labor supply is possible with the help of trade liberalization and technically educated, skilled and well experienced labor. If a country needs to enhance exports and international trade to improve its financial health, it needs technically educated and specialized labor force participation. The key objective of this paper is to analyze the impact of trade openness and human capital on labor supply in Pakistan. The improved labor market and increase in trade liberalization increases government current expenditures and the GDP of Pakistan. The study is based on time series analysis which has shown positive results on Human Capital and trade openness, in both formal and informal sectors. Skills exchange among countries lead to transformation of ideas and helps overall economy.