Are trade openness drivers relevant to carbon dioxide emission? a study of emerging economies

Suleman, Shahida and Boukhris, Mohamed and Kayani, Umar Nawaz and Mohd Thas Thaker, Hassanudin and Cheong, Calvin W. H and Hadili, Abduraawf and Tehseen, Shehnaz (2024) Are trade openness drivers relevant to carbon dioxide emission? a study of emerging economies. International Journal of Energy Economics and Policy, 14 (2). pp. 183-196. ISSN 2146-4553

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Abstract

This research is focused on an in-depth analysis of the trade drivers that influence trade openness and their impact on carbon dioxide emissions, with a concentrated examination of emerging economies from 1995 to 2020. This examination is contextualized within the scope of various trade and environmental theoretical frameworks. In our analysis, we employed a range of advanced panel regression methods, including stepwise regression for model selection, as well as Fully Modified Ordinary Least Squares (FMOLS), Panel Ordinary Least Squares (Panel OLS), and Fixed Effects Model (FEM). The long-term patterns were evaluated using Johansen co-integration tests. Additionally, the study delves into the causal links between carbon dioxide emissions and the key drivers of trade, employing Granger causality tests for this purpose. Our findings disclose a complex web of relationships, both in the short and long term, between trade openness and carbon dioxide emissions, influenced by several key factors: (i) net inflows of foreign direct investment, (ii) trade reserves, (iii) per capita income, (iv) exchange rates, and (v) gross national savings.

Item Type:	Article (Journal)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HB Economic Theory > HB238 Competition. Production. Wealth H Social Sciences > HB Economic Theory > HB3711 Business cycles. Economic fluctuations H Social Sciences > HJ Public Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Dr Hassanudin Mohd Thas Thaker
Date Deposited:	18 Mar 2024 12:49
Last Modified:	05 Aug 2024 15:08
URI:	http://irep.iium.edu.my/id/eprint/111418

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