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Atif Khan Jadoon Economics 2018 Uop Lhr.Pdf Globalization, Consumption Patterns and Cultural Changes Nexus: Evidence from Three Big Cities of Punjab, Pakistan A dissertation is submitted to the Department of Economics, University of the Punjab, Lahore, Pakistan, In partial fulfillment of the requirements for the Degree of Doctor of Philosophy By Atif Khan Jadoon Supervised By Prof. Dr. Abdul Rauf Butt Dr. Muhammad Azmat Hayat Department of Economics University of the Punjab, Lahore January 2016 ii Dedicated To My Father Who inculcated me how to be a nice human being and educated me well about the values of life iii ABSTRACT In the past few decades, some remarkable developments in the fields of information technology, transportation and communication have led to the development of closer contacts between people all around the world. As a result of these developments and increased global integration, the world has started experiencing the effects of globalization more intensely than ever. In Pakistan, the most prominent micro-level effects of globalization can be observed on culture and consumption patterns. The present study aims to establish a nexus among globalization, consumption patterns and cultural changes. In doing so, the study itself developed its three key constructs. Using a sample of 257 respondents for the pilot study, Exploratory Factor Analysis (EFA) was performed on each dimension of the three major variables. Once the EFA results confirmed that the constructs developed during EFA can be used for further analysis, a total of 1402 (only 1321 were considered valid) responses were collected for the final analysis using a disproportionate stratified convenience sampling technique with equal allocation. Confirmatory Factor Analysis (CFA) was then used to check the measurement models and the results of the Structural Equation Modeling (SEM) showed that globalization directly affects the culture of the society and brings cultural synchronization through media and technology. The results also showed that globalization directly affects consumption habits of the consumers which, in effect, induce pressure on the society of Pakistan to alter its traditional practices. In this sense, globalization was found to indirectly (through changes in consumption patterns) affect the culture of the society. Furthermore, this study also analyzes the role of the level of economic development in Pakistan that is directed towards intensifying the impact of globalization on the residents. It is found that the level of economic development is positively correlated with the intensity of this impact and the city Lahore (the most economically developed city among the three cities under consideration), followed by Rawalpindi and Multan, experiences the most intense effect of globalization on culture and consumptions of its residents. Apart from measuring the differential in the intensity of the impact of globalization on culture and consumption patterns on the consumers residing in different regions (with different level of iv development), the study also considers how, in response to globalization, respondents with different socio-demographic profiles experience a varying degree of changes in their overall life patterns. The results of the Binary Logistic Regression showed that individuals who are more educated and belong to the higher income group experience more prominent changes in their overall life patterns. The results of the study enable us to see how consumers in Pakistan are responding to globalization and its inevitable effects. Some recommendations to design public policy to benefit from this changing consumption patterns and culture are provided on the basis of the analysis, in order to optimize growth potential and maximize the benefits that Pakistan can achieve from globalization. The study concludes with some limitations and the guidelines for future research. Key Words: Globalization, Consumption Patterns, Culture, Cronbach’s alpha, EFA, CFA, SEM, Binary Logistic Regression, Invariance test, Punjab, Pakistan. JEL Classification Codes: A12, A14, B21, B31, C12, C13, C81, D12, F15, F23, H31 v DECLARATION I solemnly declare that this research work titled “Globalization, Consumption Patterns and Cultural Changes Nexus: Evidence from Three Big Cities of Punjab, Pakistan” has been written by me for the purpose of submitting it to fulfill the partial requirement for the degree of “DOCTOR OF PHILOSOPHY IN ECONOMICS”. All sources of information have been acknowledged in this thesis. I have not submitted this dissertation either in the same or different form, to this or any other university for any degree whatsoever. Atif Khan Jadoon Roll No. 03/Phd-12 Ph.D. Scholar Session: 2012-2016 University of the Punjab, Lahore. vi CERTIFICATE It is certified that Ph.D. Dissertation titled “Globalization, Consumption Patterns and Cultural Changes Nexus: Evidence from Three Big Cities of Punjab, Pakistan” is the original work of Mr. Atif Khan Jadoon. I have personally gone through the thesis and it is also certified that this dissertation is free from any grammatical/ spelling/ topographical mistakes. Prof. Dr. Abdul Rauf Butt (Supervisor 1) Meritorious Professor (R), Department of Economics, University of the Punjab, Lahore. Dr. Muhammad Azmat Hayat (Supervisor 2) Assistant Professor, Department of Economics, University of the Punjab, Lahore. vii CERTIFICATE It is hereby confirmed that the thesis “Globalization, Consumption Patterns and Cultural Changes Nexus: Evidence from Three Big Cities of Punjab, Pakistan” is based on the research undertaken by Mr. Atif Khan Jadoon and it is also verified that the research work has not been previously presented for any degree. Mr. Atif Khan Jadoon has done this research work under my supervision. He has fulfilled all the requirements and is qualified to submit the accompanying thesis for the degree of “DOCTOR OF PHILOSOPHY IN ECONOMICS”. This dissertation is prepared according to the prescribed format provided by DPPCC. Prof. Dr. Abdul Rauf Butt (Supervisor 1) Meritorious Professor (R), Department of Economics, University of the Punjab, Lahore. Dr. Muhammad Azmat Hayat (Supervisor 2) Assistant Professor, Department of Economics, University of the Punjab, Lahore. viii ACKNOWLEDGMENTS After an intensive period of around 4 years, today is the day: writing this note of thanks is the finishing touch on my thesis. First and above all, I am grateful to Almighty Allah for providing me this opportunity and granting me the capability to proceed successfully. Writing this thesis has had a big impact on me. I would like to thank some people who have continuously supported and helped me during my research work. My parents, especially my father, deserve special thanks for the time and money they have spent on developing my career. My parents have always prayed for my success. I pray to Almighty Allah to shower his countless blessings on them. Moreover, this thesis would not have been possible without the support of my brother, sisters and friends. I would like specially thank them for their support and encouragement. This thesis appears in its current form due to the assistance and guidance of several people. I would, therefore, like to offer my sincere thanks to all of them. It gives me great pleasure in acknowledging Professor Dr. Rauf Butt for accepting me as a Ph.D. student and providing his thoughtful guidance, critical comments and suggestions to improve the thesis. I would also like to thank Dr. Muhammad Azmat Hayat for his valuable comments, support and consistent encouragement. Teachers are considered as a mentor for students and play a significant role in the success of students. In this regard, I would like to mention the name of Professor Dr. Aslam Chaudhary, Dr. Hafiz Khalil, Dr. Mumtaz Anwar, Dr. Tahir Mehmood and Dr. Munir (late). Their contribution has been immense in my career development. ix I express my very profound gratitude to my colleagues Ms. Ambreen Sarwar and Ms. Maria Faiq. They have always encouraged me to complete this thesis. We were not only able to support each other by deliberating over our problems and findings, but also by talking about things other than the thesis. I also thank my best friends Aamir Azeem, Ijaz Butt, Zafar Abbas and Sumaira Subhan for their time and support throughout this research work. My friends have a special role in this thesis which cannot be expressed in words. Whenever I was stressed out they were right behind me for encouragement and endless support. Thank you very much, everyone! Atif Khan Jadoon Date of Submission: 16-01-2017 x LIST OF ACRONYMS Average Variance Extracted (AVE) Comparative Fit Index (CFI) Confirmatory Factor Analysis (CFA) Education, Health and Care (EHC) Ethnic Consumption of Necessities (ECN) Exploratory Factor Analysis (EFA) Goodness of Fit Index (GFI) Gross Domestic Product (GDP) Human Development Index (HDI) Incremental Fit Index (IFI) Information and Communication Technologies (ICT) Information Technology (IT) Kaiser-Meyer-Olkin (KMO) Kentucky Fried Chicken (KFC) Maximum Likelihood Estimation (MLE) Multinational Corporations (MNCs) Principal Components Analysis (PCA) Root-Mean-Square Error of Approximation (RMSEA) Structural Equation Modeling (SEM) Television (TV) Transnational Practices (TNPs) Tucker Lewis Index (TLI) xi Table of Contents CHAPTER 1: INTRODUCTION…………………………………………………………………………1 1.1 Statement of Research Problem…………………………………………………………………….....6 1.2 Research Objectives…………………………………………………………………………………...7 1.3 Research Questions…………………………………………………………………………………....8 1.4
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