Trade Liberalization and Environmental Quality

Amanat Ali, Nigah Abbas, Faiz-ur-Rehman and Zain-ul-Abedin

Abstract

This research is designed to empirically test and verify the presence of a relationship between trade liberalization and environmental quality in Pakistan and then, to suggest some policy recommendations on the basis of empirical evidences. In this study, an attempt is made to build linkages between trade and environment. The sustainable development is on the top-most agenda of all nations; therefore, the urgent need for developing economies is to modify their policies accordingly. This study’s results show that with the economic growth, environmental impacts may be lower. Trade expansion helps also to improve and import technologies to control pollution. Pakistan may follow liberal trade policies but it is necessary to maintain delicate balance between them and environment policies.