TRADE LIBERALIZATION AND ENVIRONMENTAL ISSUES IN PAKISTAN

This research endeavor is an exertion to empirically make an assessment and confirmation about the relationship between trade advancement and environmental features in Pakistan. Time series data covering the span of 1975-76 to 2014-15 has been utilized to carry out results. Trade, FDI, GDP and taxes on trade are taken as independent variables while CO2 is considered to be as the proxy variable of environment and is endogenous one. ADF test has been employed in order to test for order of stationarity. Auto Regressive Distributed Lag model of estimation is implemented to determine long run results. Histogram, Breush  pagan godfrey hetro test, and Breush godfrey serial correlation test are being engaged in order to test the normality of data. Cumulative sum of square test has been employed to check the stability of model.