Trade-Driven Development and Quality of Life: The Case of Pakistan

Purpose: Trade openness, inflation, and foreign direct investment are significant factors of quality of life. The purpose of this study is to estimate the impact trade openness, inflation, and foreign direct investment on the life expectancy in Pakistan. Design/Methodology/Approach: This study utilizes the Autoregressive Distributed Lag (ARDL) modeling framework, employing annual time series data spanning the period 2000–2024. In this study, life expectancy is specified as the dependent variable, whereas trade openness, inflation, foreign direct investment, and globalization are identified as the independent variables. Results: The results clarify that trade openness, foreign direct investment, and globalization have significant and positive impacts on life expectancy, while inflation has an insignificant and negative impact on quality of life. Implications/ Originality/Value: Based on the study’s findings, policymakers are urged to design strategies that address the challenges of trade openness, particularly by controlling inflation and emphasizing health-related dimensions of international trade.