Evaluating the environmental effects of economic openness: evidence from SAARC countries.

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ID: 39073
2019
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Ranked #350 of 403 articles by views in Environmental science and pollution research international

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Abstract
This study investigates the possible environmental effects of economic openness, such as economic growth, foreign direct investment (FDI) inflows, and trade liberalization in South Asian Association for Regional Cooperation (SAARC) countries. The study employed panel autoregressive lag distribution (ARDL) model to evaluate the environmental effects of economic openness; causality test was also conducted to confirm short- and long-run causality among the variables under discussion. The results show that trade, FDI, capital, and economic growth in the long run have a positive correlation with environmental degradation in SAARC countries while FDI, capital, and trade inflows have a negative relation with CO emissions in the short run. Furthermore, economic growth by creating new job opportunities improved emissions also in the short run. FDI, trade, capital, and GDP have long-run causality with CO emissions. Bidirectional causality was found between GDP and CO emissions, unidirectional causality was also running from FDI inflows to economic growth, unidirectional causality running from capital to FDI and trade to capital. Finally, trade and economic growth also have unidirectional causality in the short run. This study concludes, therefore, that SAARC countries should invest in green energy and promote green trade liberalization.
Reference Key
sun2019evaluatingenvironmental Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Sun, Hua-Ping;Tariq, Gulzara;Haris, Muhammad;Mohsin, Muhammad;
Journal Environmental science and pollution research international
Year 2019
DOI
10.1007/s11356-019-05750-6
URL
Keywords Keywords not found

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