Abstract:

The current study discusses the implications of globalization for education in Pakistan. Time series data from 1980 to 2019 has been used. KOF Index of globalization has been used as a composite measure of globalization. This index is based on three aspects of globalization: economic, social, and political. For education, the study employed the annual data for the adult literacy rate. Other supporting variables are government expenditures, private consumption, and urban population. The long-run and short-run relationships have been determined by using Johansen Co-integration and VECM, respectively. The empirical results unequivocally show the existence of co-integration, which confirms the presence of a long-run relationship in the model. The negative and significant value of the ECT (-1) term further defends the existence of the long-run relationship. The study suggests that government should take measures to maximize the fruits of globalization

Key Words:

Globalization, Education, Government Expenditures, Time Series, Co-integration

Introduction

For the last two decades, economists and other researchers associated with different academia have been considering globalization for research purposes. The major portion of the discussion is to find its pros and cons (Razaq, 2011). It is a multifaceted term that is broadly categorized into three different categories: economic, social, and political globalization. Broadly, globalization is described as a course of speedy economic integration among different countries, which are motivated by trade liberalization, investment, technological change, and capital flows (Torres, 2001). 

The effects of globalization can be seen in all walks of life. It has probably left nothing untouched. Based on extensive work on globalization, it may be regarded as a mixed blessing as globalization is showing both positive and negative impacts around the globe. However, all theorists are unanimous that globalization has had behemoth impacts on societies in all fields of life. Even a bird's eye view of the literature on globalization demonstrates that globalization has turned the green plant into a small village, a global village (Al’Abri, 2011). Among others, the impact of globalization on education is extraordinary, especially in transitional economies like Pakistan (Naz, 2016). Besides, globalization in its different forms has significant impacts on education around the globe. The desire to amend the educational systems is felt by all the nation-states in reaction to changing trends worldwide and in response to new modernized ideas (Vulliamy (2010).

The philosophies of globalization, education, and the public sector are strongly interlinked. Globalization has almost revolutionized every segment of the public sector. It has forced the governments to re-evaluate them politically, economically, socially, and culturally. It seems like a transformation at the national level is occurring around the globe. However, the process of globalization is required to be carefully tackled so that its impacts on nations may not be misunderstood (Waks, 2006). As Einstein once said, the atomic bomb would entirely change the world. In today's world, the same narrative can be set about globalization. It has been imparting its considerable impacts on the economy, culture, and politics of developed as well as underdeveloped nations. This means that physical borders are no more insuperable hurdles to any kind of links and integration among nations (Abdelhadi et al., 2015).

In recent years, the linkages between globalization and education have been tried to dig out how education has been and is being affected by globalization. Marginson (1999) describes that education “has become a prime medium of globalization and an incubator of its agents.” In addition, Cudmore (2005) unequivocally states that globalization has brought overwhelming changes in the national education systems as most of the changes in the education sector around the globe may be credited to the effects of globalization. In the same way, Ciroma et al. (2014) propose that there is no education system worldwide that is still surviving without affecting by the wave of globalization. 

Apart from the above, the process of globalization affects the policymaking in the education sector. Conventionally, policies on different issues, including education, are made inside of a country by the people at the helm of affairs. However, in the last two decades, it has been observed that globalization has been influencing and has been challenging nationally bounded educational policy (Rizvi & Lingard, 2010). Traditionally, each nation developed its educational policy accommodating its needs and preferences for the future. But under the term 'globalized education', the generalized outcomes like creating the ability to work with heterogeneous cultures and nationalists, developing the skills to survive in a multi-cultural environment, and encouraging individuals to analyze the global economic challenges (Naz, 2016). Considering the compound effects of globalization, the prime focus of this study is to evaluate the impact of globalization on education in Pakistan. The rest of the study is organized as follows: The second section of this study belongs to a review of the literature. In the third section, there is a discussion on the theoretical background, econometric methodology, and discussion of results. Section four draws conclusions and policy implications for the current study. 

Literature Review

Rikowski (2002) theoretically examined not only the nature of globalization but also scrutinized its impacts on education. The study found that it is capital globalization that is the most important indicator among all other facets of globalization. The study proposed that in the disguise of globalization, the agenda of WTO of promoting free trade around the globe is being fulfilled. Further, globalization has created room for privatization in the education sector. The private sector has been promoting unprecedented standards of education for the sake of profit. The study suggested that the government through public institutions must bridge the gap in the education sector while monitoring the private sector at the same time.

Brown (2003) suggested that globalization and education are linked with the imperfect market situation; monopoly. Certain groups and individuals are chiefly involved in the decision-making process in globalization. These groups or individuals are called monopolists in globalization. All social decisions are mainly controlled by them. The study further suggested that the doctrine of monopoly in the concept of globalization has vital importance. It has equal importance and applicability at the national and international levels. It is supported by the idea that only a few key market players can make a better decision to bring any change. 

Chinnammai (2006) found that globalization brings structural changes in a traditional society by affecting culture and education. It has been reshaping the economy of a country from an industrial-based economy to an information-based economy. In addition, there is a dark side of globalization which is creating an income gap not only among underdeveloped and developed nations but also in the same country among different groups. Apart from it, he has expounded that globalization is becoming the cause of psychological issues in the host countries as there is a huge difference between the culture of the donor dominant country and the recipient country. Therefore, the role of globalization in the education sector should be kept under effective check by domestic governments. 

Bhagwati (2007) regarded globalization as a positive and beneficial force. The study stressed that carefully monitored globalization is the best force for the societal benefit of the world. He has proposed his viewpoint based on two main beliefs: 1) the study proposed that globalization brings prosperity to the host country but this process needs time to penetrate. Once the fruits of globalization have been reaped, then spend some of the sources for the betterment of society. The study restated that globalization is a self-sustaining phenomenon. It is not a choice but a compulsion in the modern world. Rasool (2007) discussed the doctrine of monopoly in process of globalization in the context of Pakistan by saying that IMF and the World Bank are key players; monopolists in the decision-making process. The study projected that not only in Pakistan but also in other developing countries, these two powerful international financial institutions dictate economic and even social affairs.

Ali & Tahir (2009) explained the impacts of globalization on education reforms in Pakistan and further explained those educational reforms which emerged because of globalization. After reviewing policy documents and educational reforms from the 1990s onward, it has been suggested that while formulating national education policy and while initiating education reforms in Pakistan, globalization trends should be taken into consideration. 

Razak (2011) analyzed the impacts of globalization on education and culture.  The study followed a non-empirical approach by discussing the studies relating to concerning literature. The study defined globalization in various contexts and has concluded that globalization is a double-edged sword. Moreover, globalization is an inevitable phenomenon, therefore, neither the developed countries nor the developing countries can refrain from its effects. The study further suggested that more funds should be allocated to the education sector and educational institutes dealing with tertiary education and above. Culturally, positive content like research-oriented education, habits of learning and exploring new ideas must be followed. Al’Abri (2011) conducted a theoretical study to see how globalization impacted the educational policies of emerging countries; meanwhile, he took Oman as a special case. Further, globalization showed colossal impacts on the education policies of every nation in general and of developing nations in particular. More importantly, multinational organizations are playing a pivotal role in globalizing educational systems. This study suggested that the state must play its role regarding the challenges and opportunities associated with globalization.

Okoli (2012) studied the effects of globalization on education in Africa and found that globalization played a central role in the education of a country. As it has been named as a mixed blessing, therefore, its negative aspects have been more prominent in developing countries like African countries, where it has become the vital cause of social division. As per his study, it is true beyond any iota of doubt that globalization has promoted economic growth and education, but it has also brought inequality, injustice, segregation, and marginalization in poor countries particularly. Therefore, he suggested that there is a dire need to probe globalization; it should be set in such a way that it may serve both the developed and underdeveloped nations.

Ashraf & Kopweh (2012) conducted their study to explore how parity and access in the educational system of Pakistan are affected by the impacts of globalization. For data sources, they used educational policies from 1947 to 2009 in Pakistan. The technique of Critical Policy Sociology (CPS) has been used to investigate parity and access in the education system. It has been uncovered by this study that globalization has played a crucial role in increasing the enrollment rate. The literacy rate in the female has also improved. However, the dropout ratio has also burgeoned in education at all levels. They have further found that on one hand privatization in education is playing a positive role in increasing GDP and improving education standards, and on the other hand, it is causing socio-economic issues and divisions. Despite all this, the adaptation of English as a mode of instruction has benefited only a small section of society. Whereas, the major part of society is adversely affected by it.

Jahanian & Soleymani (2013) presented their theoretical research on the effects of globalization on education. They proposed that globalization is an automatic process once the economies are open to global interaction. They have given the example of a tennis ball which falls from a mountain. If it starts to fall, it will automatically sustain and increase its speed, and no additional force is needed to move it. While concluding their research, they suggest that globalization impart undeniable impacts on education at all levels and particularly at the school level. It is the need of the hour to change the curriculum at schools and enrich it with modern trends.

Arshad & Hariom (2014) conducted a study on the effects of globalization on education. Using primary data of 305 respondents, which include 213 males and 92 females, they took Agra's slump area as a case study. In their study, they have found that globalization has not only increased the awareness about the importance of education for raising the level of living but also has shown positive impacts on education in the form of an increase in their enrolment. The study suggests that the people at the helm of affairs should give more focus to these downtrodden areas.

The education system is diversified in Pakistan. The quality of education depends on the status of the recipient in developing countries like Pakistan. Besides, international institutions like International Monetary Fund and World Bank dictate policies on the subject of education. The real stakeholders are not usually consulted and involved while framing educational reforms. Therefore, they often go against the very culture, ideology, and political framework of the recipient country. It becomes a major cause of their failure in the long run. The fact is that the people at the helm of affairs use the reforms for their political interests and to maintain their status quo. Consequently, the inconsistent educational policy does not coincide with the real stakeholders and hence fails. Saeed et al. (2020) conducted a qualitative analysis by using content analysis to check the influence of globalization on education in Pakistan. The study suggests that several international organizations have influenced the educational reform system in Pakistan while fulfilling their interests rather than the interests of the host country.

It has been observed that few studies describe empirically the relationship between globalization and education. In the context of Pakistan, the condition is not encouraging regarding the concerned studies. Most of the researches are theoretical. However, the following study intends to empirically evaluate the relationship between globalization and education.

Theoretical Framework, Selection of Variables and Econometric Methodology

An analysis of the literature shows that globalization is a considerable force that may affect education worldwide in general and in Pakistan in particular. Globalization is a multifaceted process that is often observed in the political, economic, and social spheres (Sahlberb, 2004). The Hyper-Globalist approach is a modern approach to globalization, advocates its viewpoint as the world has transformed into a ‘global age’. It has reached the point of legalizing the supremacy of ‘global capitalism’ (Tikly, 2001). 'Neo-liberal agenda' is the backbone of the theory of the hyper-globalist approach (Held, 2004).  Considering this modern approach, if education is taken into consideration, there is no literature relating to globalization which states that a nation gives up its educational system in response to the influx of globalization. It is noteworthy that governments respond to the trends of globalization at different levels. They often give space for change in their defense and foreign affairs policy, but they never lose their control over the education and training sector (Green, 1999). Keeping in view the discussion, we have a set of independent variables, including globalization, that may affect education in Pakistan. Keeping in view the discussion, the functional form of the model is as under:

EDU = f (GBZIt, GEt, UPGt, PCPCt) (1)

For estimation purposes, equation-1 can be written in the econometric form. The econometric equation is as under:  

 (2)                                                 

Where ‘t’ stands for time series data. ‘EDUt’ education is measured by adult literacy rate.

‘GDZIt’ refers to the KOF globalization index. It is a proxy of globalization. 

‘GEt’ represent government expenditures as a percentage of GDP. 

‘UPGt’ indicates urban population, annual percentage growth.

‘PCPCt’ refers to private consumption per capita in rupees.

? represents intercept in the model; whereas, ?s are the coefficients  that represents the disturbance term in the econometric equation. Data has been collected from the World Development Indicator (WDI), the website of KOF Swiss Economic Institute (2020). Time series data from 1980 to 2019 for Pakistan has been used.

Stationarity of Data

Before going to co-integration, long-run and short-run analysis, stationarity, or existence of unit root in the series have been checked. Augmented Dickey-Fuller (ADF) test is used to find the stationarity of the series. ADF test gives more appropriate and authentic results while using a small data set. The ADF test at the level and the first difference have been applied to all the variables used in the model. The results of the unit root test have been mentioned in Table-1.

Table 1. The Unit Root Test

	At Level		At First Difference
Names of Variables	ADF stat	Prob. Value	ADF stat	Prob. Value
EDUt	-1.1546	0.6827	-3.6227**	0.0103
GBZIt	-0.9321	0.7663	-3.1040**	0.0357
GEt	-2.5377	0.1161	-3.9595**	0.0043
UPGt	-1.1816	0.6709	-3.5010**	0.0141
PCPCt	-1.5712	0.4866	-7.3449*	0.0000

*, ** denotes 1 percent and 5 percent level of significance, respectively

 


The results for unit root shows that all variables are non-stationary at level i.e., contains a unit root. For generating stationary series, we have adopted the differencing technique. At first, different, which shows that all series have shown their stationarity at first difference. It can be confirmed by observing ADF test t-statistics which are statistically significant after the first difference. If all series are stationary after the first difference, it is also called as all series are I (1). Since all series share the same order of integration, the Johansen co-integration technique can be used to determine the long-run relationship

Optimal Lag Length

Before proceeding with the analysis of Johansen co-integration for evaluating the long-run relationship in the model, it would be appropriate to find out optimal lag length. There are various criteria to determine the lag length, for example, Schwarz Information Criterion (SC), Hannan-Quinn Information criterion (HQ), Akaike Information Criterion (AIC), and Sequential Modified Likelihood ratio (LR) This study has used all the said criteria to find out optimal lag length. The results have been reported in Table-2.

Table 2. Optimal Lag Length

Lag	LogL	LR	AIC	SC	HQ
0	-134.0483	NA	7.9456	8.1678	8.0223
1	62.0979	325.0424*	-1.8342	-0.5010*	-1.3740*
2	88.9517	36.8280	-1.9401*	0.5040	-1.0964

*denotes the optimal lag suggested by the criteria

 




Based on results compiled after observing and evaluating all five criteria, it can be said that the optimal lag length is two for the model.

Long-run Relationship

The long-run results have been shown in the following table-3. The results indicate that two null hypotheses of no co-integration are rejected because both the Trace and Eigen statistics are greater than their respective critical values at a 5 percent level of significance.  This guarantees the presence of a long-run relationship among the variables in the model used for analysis.  

Table 3. Johanson Co-integration Results

No. of Co-integ. Vectors	Trace Statistics	Critical Value	Peobability
None*	140.6752	69.8189	0.0000
At most 1*	48.2996s	47.8561	0.0426
At most 2	20.5735	29.7971	0.3848
At most 3	5.3366	15.4947	0.7721
No. of Co-integ. Vectors	Eigen Statistics	Critical Value	Probability
None*	97.3756	33.8769	0.0000
At most 1*	28.7261	27.5843	0.0223
At most 2	15.2369	21.1316	0.2726
At most 3	5.2948	14.2646	0.7043

*rejecting null hypothesis at 5 % level

 




Long-run coefficients based on the first co-integrating vector are displayed in Table-4. It shows the impact of globalization, government expenditures, urban

population growth and private consumption per capita on education is significant and positive in Pakistan. 

Table 4. Long Run Results (Explained Variable = EDUt)

Name of Variables	Coefficients	t-stat
GBZIt	0.0125	3.0884
GEt	0.0082	4.2398
UPGt	0.0606	7.3018
PCPCt	0.0104	4.9646

Short-Run Analysis

In the short run, most of the variables showed an insignificant effect on education; the coefficient of error term’s first lag is significantly negative. The statistical value of the ECT (-1) term is negative, which indicates and is assuring a long-run relationship in the model. As Egert et al. (2009) argued that the basic and standard conditions are the significant and negative value of the first lag of short-run error correction term. 

Table 5. Short-run Results (Explained Variable = ?EDUt)

Variable	Coefficient	t-Statistic	Prob.
?EDU­t-1	0.0449	2.6928	0.0130
?GBZI t-1	-0.0128	-1.6758	0.1073
?GE t-1	-0.0136	-0.7013	0.4902
?GE t-2	0.0133	0.6779	0.5046
?UPG t-1	-0.0402	-2.1734	0.0403
?UPG t-2	-0.0155	-0.8366	0.4114
?PCPC t-1	0.0804	1.5423	0.1367
?PCPC t-2	0.0615	1.5679	0.1306
ECTt-1	-0.0973	-2.5416	0.0182
Constant	0.0674	4.6030	0.0001
R2                                  = 0.6594 Adj. R2              = 0.5113 F-stat.             = 4.4519 Prob. (F-stat.)  = 0.0015 D.W                 = 1.8396

Diagnostic Tests

Heteroskedasticity test, the goodness of model test (test for model specification), normality test, and test for serial correlation are the main diagnostic tests that are applied to the model in the short run.

Table 6. Results of Diagnostic Tests

Diagnostic	Test Name	F. Stat.	Prob.
Heteroskedasticity Test	Glejser Test	1.048054	0.4529
Model Specification Test	Ramsey RESET Test	1.485226	0.2322
Normality Test	Jarque-Bera Test Statistics	2.559404	0.2781
Serial Correlation LM Test	Breusch –Godfrey Test	1.116258	0.3462

 


The results indicate that test of heteroskedasticity; the p-value is greater than five percent probability value; therefore, the null hypothesis of no heteroskedasticity is accepted. It means that problem of heteroskedasticity does not exist in the model. Afterward, the Ramsay RESET Test has been used to check the specification of the model. The results are clearly showing that the p-value is higher than 0.05, which means that the null hypothesis is accepted. There is no specification bias in the model. To check the normality of the model, Jarque-Bera test Statistics has been used, which shows that residuals are normally distributed. Last but not the least is Breusch –Godfrey Test, which has been used to check serial correlation in the model. The results suggest that there is no serial correlation in the model. In the end, the plots of CUSUM and CUSUM_sq are presented to check and evaluate the constancy of coefficients. The results have been shown in Figure-1 and 2, where the critical boundary is at a 5% significance level




The plots in figure-1 and 2 belong to the model. The results speak that the null hypothesis (equation of regressing is rightly specified) cannot be rejected as plots of statistics are inside the critical boundary. Here, the 5% significance level is the critical boundary. Therefore, it can be said with confidence that the model is accurately specified.

Conclusion and Policy Implications

The current study employed time-series data to observe the relationship between globalization and education in Pakistan. For globalization, the study employed the KOH index of globalization. This index has three major dimensions; economic globalization, political globalization, and social globalization. Other explanatory variables include government expenditures, urban population, and private consumption. The study utilized the ADF test for unit root and found that all series have a unit root. The series are integrated of order one; therefore, we employed Johansen co-integration for long-run relationships and VECM for short-run. Empirical findings of the study show that all variables, including globalization, are positively and significantly affecting education enrollment in Pakistan. Also, the long-run relationship has been confirmed through the existence of cointegrating vectors. Besides, a significant ECT (-1) term with a negative sign also confirms the presence of a long-run relationship. We also tested our model for diagnostics, and results showed that our model is free from the problem of serial co-relation and heteroscedasticity. Whereas there is no specification bias, and the error term is normally distributed. 

The education sector in Pakistan is in deplorable condition. Although the constitution of Pakistan (Article 25A) makes it a compulsion for the state to provide free and compulsory education to the children from the age of five to sixteen, yet the state has been compromising over the instructions of the constitution in one way or the other. Besides, globalization cannot be avoided in today's world. It is slowly but steadily affecting almost all the sectors in a country. The same is the case with Pakistan. Not only theoretically but also empirically, globalization is proving beneficial for the education sector in Pakistan. The effect of globalization is observed through the globalization index, which consists of three major aspects: economic, political, and social. Therefore, improvement in all three aspects seems in favor of education in Pakistan. It is observable that the education index is accepting the impact of globalization positively but at a slow pace. It is also helpful in policymaking regarding education. The globalized trends and financing are helping in education only when it collaborates with existing norms and requirements. As Pakistan is underdeveloped with rampant poverty in its all provinces, the results of the study suggest that government has to make stringent efforts with due care to adopt all the aspects of globalization. It has been seen around the globe that economic prosperity and appreciable compatibility with the rest of the world are only for those countries which have adopted globalization. As a developing nation, the deficit in public revenues may curtail the government budget spending on education. Since government expenditures also education positively, this gap can be bridged through globalization (like foreign inflow of grants and FDI). Besides, the promotion of student exchange programs with developed countries can help gain knowledge and skill advancements. In short, globalization can bring about positive outcomes in the education sector under the guardianship of national governance. Therefore, the government of Pakistan has to focus on all aspects of globalization by adopting and promoting: trade liberalization, a sound environment for FDI inflows, international educational trends, free media, democratic form of government, cultural interactions with other countries, and bilateral and international treaties. All these measures will ultimately raise the level of living of the people of Pakistan with improvement in educational level in Pakistan.

References

• Abdelhadi, M. S., & Ahmed, K. (2015). The Impact of Globalization on Education. Popular and Democratic Republic of Algeria Ministry of Higher Education and Scientific Research, University of Tlemcen Faculty of Letters and Languages, (Doctoral dissertation, University of Tlemcen).
• Al'Abri, K. (2011). The impact of globalization on education policy of developing countries: Oman as an example. Literacy Information and Computer Education Journal, 2(4), 491-502.
• Ali, S., & Tahir, M. S. (2009). Reforming education in Pakistan-tracing global links. Journal of Research and Reflections in Education, 3(15), 1-16.
• Arshad, M. & Hariom (2011). Impact of Globalization on Education: A Study with Reference to Slum Dwellers in Agra, India. African Journal of Business Management, 1(2), 66-73
• Ashraf, M., & Kopweh, P. (2012). Globalization and education policy of Pakistan: The challenges of access and equity in education. Glasgow: College of Social Sciences, School of Education, University of Glasgow, UK.
• Bhagwati, J. (2007). Why the critics of globalization are mistaken? De Economist, 155(1), 1-21
• Chinnammai, S. (2006). Effects of Globalisation on Education and Culture. Open Praxis, 1(1), 67-72
• Ciroma, Z. I., Abubakar, H. A., Kaigama, A., & Ciroma, J. (2014). Education for Globalization: Challenges and Prospects. Journal of Educational and Social Research, 4(7), 144-147
• Cudmore, G. (2005). Globalization, internationalization, and the recruitment of international students in higher education and in the Ontario colleges of applied arts and technology. Canadian Journal of Higher Education, 35(1), 37-60.
• Green, A. (1999). Education and globalization in Europe and East Asia: convergent and divergent trends. Journal of education policy, 14(1), 55-71.
• Jahanian, R., & Soleymani, Z. (2013). Globalization and its effects on education. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(1), 346-352.
• Marginson, S. (1999). After globalization: Emerging politics of education. Journal of education Policy, 14(1), 19-31.
• Naz, S. (2016). Impact of Globalization on Higher Education in Pakistan: Challenges and Opportunities. International Journal of Innovation in Teaching and Learning (IJITL), 2(2), 1-16.
• Okoli, N. J. (2012). Effects of globalization on education in Africa 1983-2008. Academic research international, 2(1), 656-663
• Razak, M. A. A., & Abbas, M. K. M. (2011). Globalization and its Impact on Education and Culture. World Journal of Islamic History and Civilization, 1(1), 59-69
• Rikowski, G. (2002). Globalisation and Education. A Paper Prepared for the House of Lords Committee on Economic Affairs Inquiry into the Global Economy
• Saeed, A., Zulfiqar, S., Ata, G., & Rathore, K. (2020). Impact of globalization and the role of international agencies in education policy making process of south Asian countries-a case of Pakistan. South Asian Studies, 30(2), 297-316.
• Sahlberg, P. (2004). Teaching and globalization. Managing Global Transitions, 2(1), 65-83.
• Tikly, L. (2001). Globalisation and education in the postcolonial world: Towards a conceptual framework. Comparative education, 37(2), 151- 171.
• Torres, C. A. (2001). Globalization and comparative education in the world system. Comparative Education Review, 45(4), 3-10.
• Vulliamy, G. (2010). Educational Reform in a Globalised Age: What is globalisation and how is it affecting education world-wide. NYCU Education Journal, 5(1), 2-16
• Waks, L. J. (2006). Globalization, state transformation, and educational re- structuring: why postmodern diversity will prevail over standardization. Studies in Philosophy and Education, 25(5-6), 403-424.