Pakistan Ecological Footprint and Major Driving Forces …
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and FDI. The granger causality result has shown the linkages among the selected
variables. From the result, it is easily deduced that Pakistan economy is energy
induced economy. Hence, energy is found transmitting to economic growth. It is
worth to know that agriculture and FDI have shown great impact to economic growth,
and have established nexus among economic growth, agriculture and FDI. Again,
the causal result has complimented the linear result on the relationship between FDI
and environment and certified implication of FDI on environment.
6 Conclusion
This research study is based on fact finding on the major drivers of the Pakistan’s
ecological footprint with an eye on the impact of FDI and agriculture. Author’s
expectation is derived from the question embedded on the title of this study which
asked if FDI and agriculture are among the drivers of Pakistan’s ecological footprint. Hence, FDI and agriculture are anticipated to increase ecological footprint
there impacting negatively on environment. Scientific approaches such as stationarity test, linear and quadratic version of ARDL and bound testing for cointegration
were applied for clear and insightful analyses and findings. N-shaped EKC is established for Pakistan, positive relationship was established between FDI, agriculture,
energy use, and ecological footprint. From the granger causality result, a nexus is
established among the selected variables exposing Pakistan’s economy as energyled growth. Pollution haven hypothesis was confirmed from both ARDL dynamic
linear analysis and granger causal analysis through the involvement of FDI in determining the environment quality. Agriculture and energy use through their impacts
on economic growth are strong drivers of Pakistan’s ecological footprint. Hence, the
question raised in the title of the study is answered with the findings of both analyses
(ARDL and granger causality).
Policies targeting balancing the activities of foreign investors in Pakistan’s
economic pursuit is essential for achievement of sustainable development goals.
With the finding of N-shaped EKC, the continuous economic growth is not a criterion for attaining a recoverable state of environment, therefore, policies should be
framed around conservative and less carbon energy sources. Long-term goal and
model should be formulated to boost the availability of renewable energies such as
hydro powers, solar, and oceanic powers.
Conclusively, this study will serve as a reference piece for policy recommendation
to the neighboring countries. Further research on this topic is encouraged especially
with divergent scientific approaches and other variables such as natural resources
and biocapacity and ecological deficit.
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and FDI. The granger causality result has shown the linkages among the selected
variables. From the result, it is easily deduced that Pakistan economy is energy
induced economy. Hence, energy is found transmitting to economic growth. It is
worth to know that agriculture and FDI have shown great impact to economic growth,
and have established nexus among economic growth, agriculture and FDI. Again,
the causal result has complimented the linear result on the relationship between FDI
and environment and certified implication of FDI on environment.
6 Conclusion
This research study is based on fact finding on the major drivers of the Pakistan’s
ecological footprint with an eye on the impact of FDI and agriculture. Author’s
expectation is derived from the question embedded on the title of this study which
asked if FDI and agriculture are among the drivers of Pakistan’s ecological footprint. Hence, FDI and agriculture are anticipated to increase ecological footprint
there impacting negatively on environment. Scientific approaches such as stationarity test, linear and quadratic version of ARDL and bound testing for cointegration
were applied for clear and insightful analyses and findings. N-shaped EKC is established for Pakistan, positive relationship was established between FDI, agriculture,
energy use, and ecological footprint. From the granger causality result, a nexus is
established among the selected variables exposing Pakistan’s economy as energyled growth. Pollution haven hypothesis was confirmed from both ARDL dynamic
linear analysis and granger causal analysis through the involvement of FDI in determining the environment quality. Agriculture and energy use through their impacts
on economic growth are strong drivers of Pakistan’s ecological footprint. Hence, the
question raised in the title of the study is answered with the findings of both analyses
(ARDL and granger causality).
Policies targeting balancing the activities of foreign investors in Pakistan’s
economic pursuit is essential for achievement of sustainable development goals.
With the finding of N-shaped EKC, the continuous economic growth is not a criterion for attaining a recoverable state of environment, therefore, policies should be
framed around conservative and less carbon energy sources. Long-term goal and
model should be formulated to boost the availability of renewable energies such as
hydro powers, solar, and oceanic powers.
Conclusively, this study will serve as a reference piece for policy recommendation
to the neighboring countries. Further research on this topic is encouraged especially
with divergent scientific approaches and other variables such as natural resources
and biocapacity and ecological deficit.