This study aims to demonstrate the validity of the Pollution Haven Hypothesis (PHH) for BRICS nations by revealing the empirical relationship between foreign direct investment (FDI), air pollution, and environmental regulations. At the same time, the study objectives are based on the BRICS′ COP26 goals focused on mobilizing climate finance annually. The SDGs agenda for 2030 seeks to implement effective climate change planning and management. However, the study uses the panel data of BRICS countries from 2000 to 2020. This study has used the PMG/PARDL model to empirically test the existence of PHH in BRICS countries. Therefore, the empirical estimates indicate that an increase in FDI increases environmental degradation. Consequently, the findings confirm the existence of PHH in BRICS. This study demonstrates that at low levels of stringency, the likelihood of pollution-intensive FDIs increases with a decrease in severity. Even though strict regulations may lead to higher pollution-intensive foreign direct investment (FDI), this is not always the case at lower levels of law. This implies that the same pollution activity may be economically and socially unsuitable for developed environments but desirable for less advanced environments. These distinctions are the foundation for the emergence of pollution havens. Therefore, environmental policy laxity must be formed to induce FDI flow into the BRICS countries, further implying SDG’s accomplishment. Furthermore, additional stringent regulations might very well result in FDIs with a more significant environmental impact. This suggests that pollution havens are only possible if environmental rules are lax or inconsequential.
Employment diversification depicts a dynamic socio-economic process where domestic workers widen the range of employment sources. Whereas, the prospect is usually based on a mix of Part-time and Full-time employment. Employment decisions significantly derive from the economic incentives such as wage differentials and the growth rates in different sub-sectors of economic activity. Research at hand summarizes and analyses Employment Diversification Patterns in Pakistan and the motives behind the labor shift. Time series data has been collected from various sources for 1990-2018. The Seemingly unrelated regression model has been applied for empirical estimations. The current analysis of employment pattern diversification concluded that part-time and full-time wages rates have a significant impact on the part and full-time employment in different sub-sectors of economic growth. Variation in wage rates in one sub-sector varies the employment level in different sectors. The estimates elaborated the significant rise in part-time employment these sub-sectors. Moreover, the dynamic interrelation between part-time and full-time employment is examined in the Agriculture, Construction, Electricity, Manufacturing, Wholesale and Retail Trade, Transport, Storage and Communication. These estimates show the quick adjustment of part-time employment within and across the sectors. Policies are needed to enhance labor mobility as one wants to diversify the employment one can do it to enhance the economic productivity.
Enormous fluctuation has been observed in energy prices in recent years. This strong volatility in energy prices implies grave inferences for Pakistan’s economy as shown by its substantial dependence on imported fuels. In Pakistan, energy prices play a critical role in inflation determination also concluded in the study at hand. The index of energy inflation was constructed, and the role of various control variables such as board money, taxes, oil prices, energy import, and GDP has been elaborated. Current study endeavors to examine the determinants of energy inflation in Pakistan by using time-series data for 1991 to 2019. Unit root was tested by utilizing ADF, furthermore, the Bound test suggested ARDL cointegration for empirical analysis. Therefore, an increase in the demand for energy in economic activities in developing countries indicates an energy demand hence implies energy inflation. The government of Pakistan must focus on the role of these factors to control inflation and to enhance the welfare in the country.
The linkage between trade liberalization, environmental quality and economic growth is becoming an increasingly popular issue in environmental economics in recent decades. In view of Pakistan’s position as one of the main contributors to carbon dioxide emissions in Asia, it is vital to identify the main determinants of carbon dioxide emissions. The present study empirically investigates the long run association among trade liberalization, environmental quality and economic growth along with other variables energy use and capital labor ratio in Pakistan for the period 1980-2018. The results also indicate that there is inverted U shape relationship between economic growth and carbon dioxide emissions, hence the environmental Kuznets curve hypothesis is valid in Pakistan during 1980-2018. Trade openness has a negative significant impact on carbon dioxide emissions. Capital labor ratio effects and energy use have a direct relationship with carbon dioxide emissions. The results show that environmental quality is first declined by economic growth but with further increase in growth, environmental quality is improved which supports the existence of Environmental Kuznet curve hypothesis in Pakistan during that time span. Furthermore, results also show that trade openness has positive significant impact on environmental quality.
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