Economics, Econometrics and Finance
4 years ago

Trade openness in Pakistan leads to increased pollution levels, study finds.

Review of Economics and Development Studies
Does Trade Openness Transfer Pollution across Borders: An Experience of Pakistan
Fareed Shareef, Imran Sharif Chaudhary, Toseef Azid, Muhammad Raza Zafar

Paper Summary

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Trade openness in Pakistan has been studied to see if it affects pollution levels. The researchers used data from 1972 to 2019 and found that trade openness generally leads to lower pollution levels, except when considering the scale effect. This means that the impact of trade on pollution in Pakistan is decreasing overall. However, higher capital labor ratio in Pakistan is linked to increased pollution due to capital goods being pollution-intensive.