An (a)symmetric analysis of the pollution haven hypothesis in the context of Pakistan: a non-linear approach

This work re-investigates the pollution haven hypothesis in the context of Pakistan for the time span 1975–2016 by employing a non-linear autoregressive distribution lag (NARDL) approach. The empirical findings validate an symmetric association between FDI inflow and emissions in both the short and...

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Bibliographic Details
Main Authors: Zia Ur Rahman, Wu Chongbo, Manzoor Ahmad
Format: Article
Language:English
Published: Taylor & Francis Group 2019-05-01
Series:Carbon Management
Subjects:
Online Access:http://dx.doi.org/10.1080/17583004.2019.1577179
Description
Summary:This work re-investigates the pollution haven hypothesis in the context of Pakistan for the time span 1975–2016 by employing a non-linear autoregressive distribution lag (NARDL) approach. The empirical findings validate an symmetric association between FDI inflow and emissions in both the short and long run. Further, agriculture has an insignifancant positive impact on emissions, while trade oppenness and population growth have significant negative impacts on emissions in both the short and long run. Morover, gross domestic product (GDP) per capita has significant positive, while GDP per capita squared has significant negative, effects on emissions in the short and long run, hence confirming the environmental Kuznets curve hypothesis. Findings overall confirm the applicability of both the pollution haven and EKC hypotheses in Pakistan. The government should focus on FDI inflow, because the adoption of clean technologies by foreign firms to invest in Pakistan is crucial to curtailing emissions.
ISSN:1758-3004
1758-3012