Международный журнал экономики и менеджмента

Measuring the Effects of Globalization on Public Purchasing with Mediating Role of Research and Development: Empirical Evidence from Developing Economies

Abstract

Muhammad Waseem Akram, Irfan Ahmad Khan, Ansar Abbas, Mansoor Ahmad Khan Sanwal, Muhammad Farooq Ahmad and Waqar Arshad

While examining the effect of globalization on public purchasing, the role of research and development was neglected before. Globalization is concerned with growing inequality in most highly developed economies, but also with the gap found in the vast majority of emerging economies. In most emerging economies, technological and financial development has led to growing inequality, while its impact on developed economies has been mixed. Furthermore, our findings show that the effects of GDP, foreign direct investment and the supply of unskilled workers to the effects of technology, and the effects of globalization on the supply of skilled workers to the effects of financial growth and also acts as a transmission channel. This research also examines how much the globalization effects public purchasing when R & D plays a mediating role in Pakistan. Data was used from 2002 to 2018 by applying dynamic ARDL simulation model. Dynamic ARDL simulations model has ability to calculate the real positive and negative modification in the independent variables and its influence on the dependent variable. The studied outcomes of dynamic ARDL simulations shows that foreign direct investment, research and development, gross domestic product and economic global index have positive effect on public purchasing in Pakistan while inflation, interest rate have negative effect on public purchasing in Pakistan. Based on the results of this study policy implications are suggested for Pakistan.