FDI, Population Density and Carbon Dioxide Emissions: A Case Study of Pakistan

The study attempts at finding the impact of foreign direct investment on carbon dioxide emissions in Pakistan. It takes carbon dioxide emissions as dependent variable and foreign direct investment, share ofmanufacturing value added and population density as independent variables. ADF, PP, Ng-Perron andZivot-Andrews Unit root tests were used to find the unit root problem. ARDL and its error correction model were used to find the long run and short run relationships. The study found the long run relationship in the model but short run relationship did not exist. Foreign direct investment, manufacturing value added andpopulation density have positive impact on carbon dioxide emissions.