Trade openness, financial liberalization, economic growth, and environment effects in the North-South: new static and dynamic panel data evidence

Xiuping Hua, Agyenim Boateng

    Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

    Abstract

    Purpose: This chapter investigates the long-run relationship between trade, financial openness, economic growth, and carbon dioxide emissions across 167 countries over the period 1970–2007.
    Methodology/approach: We employ both standard panel least squares and dynamic Generalized Method of Moments approaches to overcome problems of mis-specification inherent in the prior literature.
    Findings: We find a strong link between economic growth, trade, financial openness, and environment. For the entire sample and industrial countries, our results support the environmental Kuznets curve (EKC). Our results also suggest that while economic growth, trade financial, and openness reduce CO2 emissions for all countries, the countries from the North appear to benefit more from trade and financial openness than the countries from the South in terms of reduction in CO2 emissions.
    Research implications: The results imply that policy makers should not seek to limit efforts to link trade openness and financial liberalization to environmental quality but to set trade policy-making, economic growth, and financial liberalization in a broader context to take into account environmental concerns as these issues are inextricably linked.
    Original languageEnglish
    Title of host publicationBeyond the UN Global Compact: Institutions and Regulations
    EditorsLiam Leonard, Maria Alejandra Gonzalez-Perez
    PublisherEmerald Publishing Limited
    Pages253 - 289
    Number of pages37
    ISBN (Electronic)9781785605574
    ISBN (Print)9781785605581
    DOIs
    Publication statusPublished - Jun 2015

    Publication series

    NameAdvances in Sustainability and Environmental Justice
    Volume17
    ISSN (Print)2051-5030

    Keywords

    • trade
    • financial openness
    • economic growth
    • CO2 emissions
    • environment

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