Is Foreign Direct Investment a Cause of Environmental Degradation in  Pakistan? An ARDL Approach to Cointegration

Kamran Hamid

doi:10.29145/jmr/32/0302003

Is Foreign Direct Investment a Cause of Environmental Degradation in Pakistan? An ARDL Approach to Cointegration

Kamran Hamid Commission on Science and Technology for Sustainable Development in the South (COMSATS), Pakistan

DOI: https://doi.org/10.29145/jmr/32/0302003

Keywords: Inflation, Environment, CO2 emissions, FDI

Abstract

This study has investigated the empirical relationship between FDI and environmental degradation in Pakistan and 43 years of data is used in the study started from 1972 to 2014. Empirical tests show that there exist mix-cointegrating series, so ARDL bounds testing is applied to check the short-long run cointegration among the variables. Results concluded that FDI causes CO2 emissions in long and short-run both. To check the direction of causality between variables, an ARDL Granger test is applied. It proved that FDI and CO2 emissions have bidirectional causality and causing each other from both ways.

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Published

2016-12-30

How to Cite

Hamid, K. (2016). Is Foreign Direct Investment a Cause of Environmental Degradation in Pakistan? An ARDL Approach to Cointegration. Journal of Management and Research, 3(2), 1-17. https://doi.org/10.29145/jmr/32/0302003

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Issue

Vol 3 No 2 (2016): Volume 3, issue 2, 2016

Section

Articles

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Thus, work submitted to Journal of Management and Research implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere.