Agricultural trade significantly promotes the economic boom in developing countries. Extensive traditional agricultural production methods have increased the pressure on the agricultural environment by expanding agricultural trade, which has attracted the attention of many scholars. This study aims to empirically examine the impacts of agricultural trade on economic growth and agricultural environmental pollution in Bangladesh from 1972 to 2019, using an Auto Regressive Distributed Lag (ARDL) model with a structural break to examine the long-run and short-run determinants of agricultural environmental pollution in Bangladesh. The ARDL bounds analysis methodology showed that it does not support the hypothesis that agricultural trade led to environmental pollution in the long-run. The results suggest a relationship between economic growth, energy, and FDI towards agricultural environmental pollution, indicating a positive long-run relationship. Furthermore, in the short run, agricultural trade indicates positive drivers towards agricultural environmental pollution. Therefore, it is recommended that the enhancement of trade liberalization policies should ensure cleaner technologies and products that could help reduce environmental pollution.
Abstract. This study explored the relationship between trade openness, foreign direct investment, GDP, and environmental quality in Pakistan by using time series data for time period of 1971-2016.To examine long-run and short-run association among projected variables, we employed autoregressive distributed lag ARDL-bounds testing approach. The findings of the study confirmed a positive and significant long run association between trade openness, foreign direct investment, and environmental degradation in Pakistan. However, there is no relationship between GDP and environmental quality. Policymakers must consider environmental degradation due to trade openness and FDI; further environmental quality should not be ignored. The government must enforce environmental laws on local and international organizations. IntroductionThe worldwide environmental concerns due to adverse climate changes over planet earth have tended world economies towards the use of green energy along with considerable reduction in CO 2 emission [1]. According to the recent studies, the large part of carbon emission is coming from the developing economies due to rapid economic growth. The globalization, where it benefits the developing economies to nurture their economies through reduced investment and trade barriers, opening of technology transfer, and mobilized capital and labor [2].To investigate the real impact of trade on environment, various studies haveanalyzed the dynamic relationship between trade liberalization, energy usage and economic growth. Most of the researchers agreed at first that trade liberalization has improved allocation of domestic resources. Some studies found that liberalization of trade reduced pollution and decreased the use of energy efficiency. For example, the study by Sbia et al. [3] found that liberalization of trade enhanced the flows of new technology which substituted the old technology profoundly overwhelming the use of energy. Conversely, some studies found that liberalization of trade has deteriorated the environmental quality. The study by Lopez [4] shows that trade liberalization was tailed by an escalation in energy-based-events such as manufacturing and transportation that devour heavy energy and yield pollution.The aim of this research is to investigate the economic impacts of the trade openness on the environmental quality in Pakistan. Specifically, the paper inspects whether openness of the trade has harmed the quality of the environment in Pakistan. For empirical results, we used ARDL approach for short run and long run.The structure of the paper is as follows: Section 2 reviews the existing literature on the subject. Section 3 presents the model, methodology and data. Section 4 presents the empirical results and also discussion. The last section concludes the study.
The ongoing adverse effects of climate change produced by carbon dioxide emissions have sparked global advocacy to face its adverse consequences with the utmost vigor. Pakistan’s contribution to global emissions is less than 1% while it is among the most vulnerable countries facing threat of climate change. The sources of carbon dioxide (CO2) emissions by particular nations must be understood to comprehend the procedures necessary to reduce emissions globally. This study is a contribution to empirics of the CO2 emissions, gross domestic product, crop production index, livestock production index, population, agricultural land, land under cereal crop and agriculture value-added. This study considered annual data from 1961 to 2014 for the country of Pakistan. We performed an Autoregressive distributed lag (ARDL) bound testing approach to investigate the long-run and short-run association among all research variables. To check the stationarity of the study variables, we also employed Augmented Dickey-Fuller and Phillips-Perron (P.P.) tests. The outcomes of the long-run estimates indicate that the coefficients of agricultural land and land under cereal crop have a positive and significant relationship with CO2 emissions, while the coefficients of crop production index have a negative and significant relationship with CO2 emissions, respectively. The outcomes from short-run estimates show that the coefficients of crop production index and livestock production index are both positive and statistically significant, which implies that these variables are crucial in boosting carbon emissions. The error correction model value is also negative and statistically significant, indicating the deviation of CO2 emissions to other variables from short-run to long-run equilibrium. According to the Pairwise Granger causality test, there is evidence of both unidirectional and bidirectional causation between the research variables. Based on the research outcomes, the government must carefully consider its regulations on agricultural and livestock production and embrace ecologically friendly techniques in the agriculture sector, which may minimize carbon emissions over time.
This study examines the impact of agricultural export on the economic growth in Nepal for the time period of 1970-2015. In this analysis, researchers used the ARDL model using structural break to investigate the relationship between agricultural exports and economic growth in Nepal. Agricultural land, exchange rate, foreign direct investment, trade openness and agricultural environmental pollution have all been included in this analysis. According to estimates, ARDL, tend towards short-run relationship has been validated. Whereas, in the long-run relation we found negative relation. Furthermore, this study found that agricultural land is directly affecting economic growth. This study recommends policies that improve agricultural production and trade should be strongly pursued to help boost a country’s economic growth
The economy of Pakistan has constantly been plunged due to its severe electricity shortages over the last 2 decades and persistently faces challenges in revamping its electricity supply network. The purpose of this research was to assess the causal relationship between carbon dioxide emissions (CO2), combustible renewable and waste (CRW), electric power consumption (EC), electricity production from coal (EPC), hydroelectric (EPH) and natural gas (EPN) sources, energy use (EU) and gross domestic product (GDP). The scope of this research included Pakistan’s annual time series data from 1971 to 2014. This study employed Autoregressive Distributed Lag (ARDL) bound testing analysis to determine the long-term and short-term correlations among all research parameters. This research also conducted Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) tests to evaluate the stationarity existence among dependent variable and independent variables. The outcomes of the fully modified least squares (FMOLS), dynamic ordinary least square (DOLS) and canonical co-integrating regression (CCR) estimators showed that coefficients of EC, EPH and GDP all were a significantly positive relationship with CO2 emissions, while the coefficients of CRW, EPC and EU were negatively significant, respectively. Furthermore, the outcomes from the short-run analysis revealed that the error correction term value was -0.8668, which indicates that from short-run to long-run equilibrium, the adjustment of the deviation of CO2 emission is by 86.68 percent annually. Moreover, the diagnostic results also demonstrated that the model employed in this research is stable and reliable. Pakistan was selected in this research work because of the deficit of power and if environmental degradation continues unchecked, it will eventually affect the state’s economic growth and CO2 emissions. The study’s primary policy recommendation is that government energy policymakers in Pakistan who create the environment framework in should pursue conservative energy measures as such measures will not negatively impact economic growth.
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