This paper examines the relationship between FDI, CO₂ Emission, and economic growth in SAARC countries using time series data during the period from 2000 to 2015. In this study applied Simple and Semi log linear regression approach to check Trend analysis. I have also applied Correlation and Simple Linear Regression model approach to check the relationship between FDI, Economic Growth and CO₂ Emission of the variables. Results also show that the estimated coefficients of emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.

KEY WORDS: FDI, Economic Growth and CO₂, Emission, degradation