Abstract

The environmental degradation has become one of the most debatable issues in 21st century. The current study explores the impact of agricultural exports and financial openness on ecological footprints in Pakistan. For this purpose, the study utilizes time series data. Unit root tests are applied to check the data for unit root problem and autoregressive distributed lagged (ARDL) model is employed for cointegration analysis. The results of the study show that agriculture exports are responsible for lessening ecological footprints in long run as well as in short run thus; increase in agricultural exports will restrain environmental degradation in Pakistan. The results also revealed that financial openness increases ecological footprints henceforth, environmental degradation in Pakistan. Moreover, trade openness, economic growth and energy consumption are also significant factors of ecological footprints. Keywords: Agricultural exports, financial openness, ecological footprints, Pakistan.JEL Classifications: C22, E01, F18, Q57DOI: https://doi.org/10.32479/ijeep.11744

Highlights

  • The geographical scope of environmental policies has become a debate with concerns, it has widened over the period of last few decades

  • Agricultural exports are taken as a percentage of merchandise exports and financial openness is proxy with ratio of net flows of foreign direct investment (FDI) to GDP

  • The current study explores the impact of agricultural exports and financial openness on environmental degradations in Pakistan

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Summary

Introduction

The geographical scope of environmental policies has become a debate with concerns, it has widened over the period of last few decades. Most of the environmental problems and obstacles are need to be tackled by more than one nation as it has become a global concern (Vogel, 2000). In today’s era of globalization, international trade plays a vital role in the relative growth of economies and it has significantly grown in recent decades. This growth in trade across the boarders has led environmental concerns in both exporting and importing nations. Policy disputes over the international trade and environment has led some indifferent conceptions regarding the impact of the international flows on environmental situations

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