TRADE OPENNESS AND CO2 EMISSIONS NEXUS IN OMAN

Trade Openness (TO) has a strong role in the development of an economy but its impact on the overall environmental profile of a country is debatable. This analysis is focused to test how trade openness affects CO2 emissions in Oman. Unit root tests are conducted and ARDL model is employed using data from 1972-2014. The results of the study suggested that both Gross Domestic Product (GDP) per capita and trade openness seem to have the positive impact on CO2 emissions. It means that a higher GDP per capita and trade openness destructs the environment in the country. The results leave space for Oman's government to consider the environment while devising its trade policies.