title: Economic growth, CO2emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS.
abstract: First attempt has been made to find the effects of foreign direct investment on environmental pollution and economic growth, in addition to finding the determinants of foreign direct investment inflows in Pakistan using the annual data set for the period of 1980-2014. Simultaneous equation model has been used to find relation between the variables of concern. Results from technique and composition effects show that increase in economic growth leads towards more pollution emissions. Scale effect shows stock of capital and labor have positive effect on the economic growth of Pakistan while pollution has negative effect on growth. In case of capital accumulation effect, economic growth and foreign direct investment have positive and significant effect on stock of capital. Although increase in economic growth increases pollution, however, economic growth declines as pollution crosses a certain limit. Foreign direct investment is also found positively related with pollution.
authors.affiliation: Department of Management Sciences, COMSATS Institute of Information Technology, Vehari, Pakistan. Electronic address: kbmultan@hotmail.com.
authors.forename: Khuda
authors.initials: K
authors.lastname: Bakhsh
authors.affiliation: Institute of Agriculture and Resource Economics, University of Agriculture Faisalabad, Pakistan.
authors.forename: Sobia
authors.initials: S
authors.lastname: Rose
authors.affiliation: Institute of Agriculture and Resource Economics, University of Agriculture Faisalabad, Pakistan.
authors.forename: Muhammad Faisal
authors.initials: MF
authors.lastname: Ali
authors.affiliation: Dongbei University of Finance and Economics, Dalian, China.
authors.forename: Najid
authors.initials: N
authors.lastname: Ahmad
authors.affiliation: Montpellier Business School, France.
authors.forename: Muhammad
authors.initials: M
authors.lastname: Shahbaz
mesh_terms: D057217:Economic Development; D004787:Environmental Pollution; D038622:Internationality; D007449:Investments; D010154:Pakistan
keywords: Environmental pollution; FDI; GDP; Labor; Physical capital