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

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Published Dec 31, 2021
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Statistic
Vol. 4 No. 4 (2021): Jahan-e-Tahqeeq

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Dr. Syed Wahid Ali, Muhammad Kamran Bhatti, Kanwal Younas

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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