Vol. 112 No. 2 (2018)
Research Papers

Trade liberalization, FDI inflows economic growth and environmental sustanaibility in Pakistan and India

Gulzara Tariq
School of Management Science and Engineering. Jiangsu University. China
Huaping Sun
School of Finance & Economics. Jiangsu University. China
Muhammad Haris
School of Finance & Economics. Jiangsu University. China
Yusheng Kong
School of Finance & Economics. Jiangsu University. China
Athar Nadeem
University of Science and Technology. Anhui. China
Published December 12, 2018
How to Cite
Tariq, G., Sun, H., Haris, M., Kong, Y., & Nadeem, A. (2018). Trade liberalization, FDI inflows economic growth and environmental sustanaibility in Pakistan and India. Journal of Agriculture and Environment for International Development (JAEID), 112(2), 253-269. https://doi.org/10.12895/jaeid.20182.722

Abstract

To explore the possible environmental and economic influences of FDI and Trade openness in Pakistan and India is the aim of this study. Especially this study investigates whether trade liberalization harm the environment of Pakistan and India or not. We conducted panel ARDL model for both countries as a group. We found that FDI and CO2 has positive relation with each other in empirical section which shows FDI of both countries could harm their environment. In long run trade has negative correlation with environment but in short run it has positive correlation. This study concludes that FDI and trade liberalization can boost the economy by crating job opportunities but they harm the environment in Pakistan and India.