An Empirical Analysis of the Relationship between International Trade and Quality of Life

Ever increasing trade restrictions have severe consequences for the quality of human life. Since improving the quality of life (QoL) is the core of economic development, therefore, it is important to investigate the factors affecting it. International trade is an important factor which affects QoL. Therefore, the current study is an attempt to analyze the nexus of international trade and QoL in the member countries of the United Nation Development Program (UNDP). Since QoL is a subjective measure, therefore, human development index (HDI) was used to empirically measure it. Data of 184 UNDP member countries for a period of 28 years (1990-2017) was analyzed in the current study. Both cross-sectional and panel data analysis techniques were used. The results indicated that international trade positively affects QoL. Hence, it was concluded that instead of remaining a closed economy, countries should promote international trade to improve the QoL of their people