An Empirical Research on Trade Libralization and Co2 Emission in Pakistan

Abstract

This article examines the impact of carbon dioxide emission on trade liberalization in Pakistan. For this purpose we have used secondary data from 1980-2010. The variable were taken as CO₂ emission and openness of trade. Granger causality test was applied to analyze the dynamic relationship between variables under study. Empirical results show that bi-directional causality is running between openness of trade (OT) and carbon dioxide emission (CO₂).