Analysis of the Impact of Inflation, CO2 Emission and Foreign Direct Investment on Economic Growth in Pakistan - Kanwal Fatima, Abdul Ghafoor Awan

Drawing on the classical and endogenous growth theories articulated by Schumpeter, Solow– Swan, and Romer, this paper analyzes the relationships between CO₂ emissions, inflation, foreign direct investment (FDI), labor‑force participation, and economic growth in Pakistan from 1995 to 2020. Using time‑series data, we employ several econometric tools—most notably correlation analysis and the bounds‑testing ARDL approach—to test the hypothesized links. Prior studies present mixed evidence on these connections, highlighting the need for further inquiry. Our findings reveal that CO₂ emissions and inflation exert a negative long‑run impact on economic growth, whereas FDI and labor‑force participation enhance it. These