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The Nexus of Foreign Direct Investment, Economic Growth and Environment in Pakistan

Author

Listed:
  • Syed Sundus Raza

    (Visiting Faculty, Fatima Jinnah Women University, Rawalpindi)

  • Anwar Hussain

    (Assistant Professor, Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper estimate the impact of sectoral FDI on economic growth and carbon dioxide emissions in Pakistan. To this end, it uses time series secondary data from 1972 to 2011 and applies Auto Regressive Distributed Lag (ARDL) models. The results showed that FDI inflows in manufacturing, transport, storage and communication sectors and energy consumption have positive effect on the GDP growth of Pakistan. Besides, FDI inflow in manufacturing, transport, storage and communication sector and population density are responsible for the CO2 emissions in Pakistan. The results also validate Environmental Kuznet Curves in both long and short run.

Suggested Citation

  • Syed Sundus Raza & Anwar Hussain, 2016. "The Nexus of Foreign Direct Investment, Economic Growth and Environment in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(2), pages 95-111.
    • Handle: RePEc:pid:journl:v:55:y:2016:i:2:p:95-111
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    File URL: http://www.pide.org.pk/pdf/PDR/2016/Volume2/95-111.pdf
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    References listed on IDEAS

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    5. Sakib, Mohammad Nazmus & pande, Saikat & kumar, Rimon & Arif, Dr. Kazi mostafa, 2021. "Chinese Foreign Direct Investment and Economic Growth of Bangladesh: A VECM Analysis," MPRA Paper 109654, University Library of Munich, Germany.
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    More about this item

    Keywords

    Sectoral FDI; CO2 emissions; Environmental Kuznet Curves; Gross Domestic Product Growth;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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