Trade, Environment, Human Capital and Services Sector in Developing Countries: A Panel Data Analysis

Abstract

Objective: This study aims to examine the influence of Trade Liberalization, Environmental Quality (CO2 Emission) on Services Sector Growth in some selected developing. Methodology: The estimation of the study considers panel data unit root and panel data ARDL approach. The environmental quality is represented by Carbon Dioxide Emission and trade liberalization is by trade openness. Findings: The results of Panel Unit Root test summarize that Panel ARDL is the most appropriate method of estimation for having Panel Coefficient values due to mixed order of integration for developing countries. Implications: The empirical findings of model, in Developing Countries, Labor Force, Capital Stock, Trade Openness, Money Supply, Government Expenditure and Human Capital exert upward pressure on Services Value Addition while Carbon Dioxide Emission and Price Level is putting download pressure on Services Value Addition.