Foreign Direct Investment, Trade Openness, CO2Emission and EconomicGrowth in Pakistan: Bi-variate Co-integration

Authors

  • Dr. Syed Wahid Ali Assistant Professor, Department of Economics, Bahauddin Zakariya University, Sub-Campus Vehari, Pakistan. Author
  • Muhammad Kamran Bhatti School of Economics and Trade, Hunan University, Changsha, China. Author
  • Kanwal Younas Department of Economics, The Women University Multan, Multan, Pakistan. Author

Keywords:

FDI, Trade Openness, CO2 Emission, Economic Growth, Pakistan

Abstract

The current study is designed to investigate the relationship between CO2emission and various
economic indicators such as economic growth, foreign direct investment, trade openness, domestic investment
and labor force in Pakistan. The study covers the period for 1972-2017.To achieve the objective of consistency
in the estimation results, the study applies different estimation techniques such as Augmented Dickey fuller
Test (ADF) was used to test the unit root and Johansson co-integration test (JCT) used to test the long run
relationship among the variables. The results of the study show that CO2emission has long run relation with
FDI, DI and TO. CO2emission has causality with DI. Results of the study suggest that government would pay
attention to increase the industrialization in the country that become the cause to increase domestic investment
and also attract the foreign investment in the country which increase the productivity and produce the skilled
labor

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Published

2021-10-01

Issue

Vol. 4 No. 4 (2021): jahan-e-tahqeeq

Section

Articles