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Impact of International Trade and Globalization on Financial Markets: A Case of Pakistan

Author

Listed:
  • Memoona Manzoor Kiani

    (Faculty of Management Sciences, International Islamic University Islamabad, Pakistan)

  • Shain Taj Raisani

    (Project Officer, Health Department Balochistan, Pakistan)

  • Dr. Muhammad Nabeel

    (Assistant Professor, Department of Management Sciences, Qurtuba University of Science and Information Technology, Dera Ismail Khan, Pakistan)

  • Shahan Zeb Khan

    (Faculty of Management Sciences, International Islamic University Islamabad, Pakistan)

  • Kashif Lodhi

    (Department of Management, Economics and Quantitative Methods, Università degli Studi di Bergamo via dei Caniana 2, 24127 Bergamo (BG), Italy)

Abstract

This study investigates the intricate relationship between international trade, globalization, and Pakistan's financial markets through quantitative analysis. Using regression, correlation, time-series, and comparative methodologies, data from 2018 to 2022 was analyzed. Findings indicate a direct correlation between higher trade volumes and improved stock market performance, while a rising globalization index aligns with increased capital inflows. Exchange rate fluctuations reflect the currency's sensitivity to global economic shifts. Comparative analysis with regional counterparts highlights both aligned and divergent financial market trends. Moreover, a sensitivity analysis emphasizes the potential impact of Foreign Direct Investment (FDI) on stock market indices. These insights underscore the importance of trade policies, global integration, and FDI in shaping Pakistan's financial market dynamics within the evolving global economic landscape.

Suggested Citation

  • Memoona Manzoor Kiani & Shain Taj Raisani & Dr. Muhammad Nabeel & Shahan Zeb Khan & Kashif Lodhi, 2023. "Impact of International Trade and Globalization on Financial Markets: A Case of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 493-500.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:493-500
    DOI: https://doi.org/10.61506/01.00059
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    References listed on IDEAS

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