Trade Openness, Economic Growth and the Environment the Case of Ghana (original) (raw)
Related papers
The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries
Energies, 2020
Using a panel cointegration model developed based on the data extracted from the World Bank indicators, this study quantified the relationship between carbon emissions, energy consumption, economic growth, and trade openness in sub-Saharan African countries. It discovered from our analysis that there exists a long-run causality association amongst CO2 emissions, energy consumption, economic growth, and trade openness. The study noted the existence of the Environmental Kuznets Curve (EKC) in the panel using the square term for trade openness; it was found to have a negative impact, thus trade in the long run will somewhat decrease the environmental pollution in this region. The study results imply that there should be stringent policies and rigorous enforcement in sub-Saharan African to ensure sustainable growth without associative environmental issues.
Journal of Economics and Sustainable Development, 2014
This study investigated the influences of economic growth, increased urbanization and trade openness on carbon dioxide (CO 2) emissions in Africa. The study used time series data accessed from World Bank Data Base and Environmental Information Association (EIA) covering 51 years (1960-2010). The data were subjected to various econometric tests including Unit root tests before applying the bound test for cointegration using Autoregressive Distributed Lag (ARDL). It was found that GDP growth rate (p<0.05) and trade openness (p<0.05) were the major long-run and short-run determinants of emissions (Green House Gas emissions) on the continent. The findings which agreed with other environmental economists' and Kuznet's postulation informed us to recommend that African countries should begin to take proactive measures that will bring about green economy on the continent.
DOES TRADE OPENNESS EXACERBATE CARBON DIOXIDE EMISSION? : EVIDENCE FROM NIGERIA
Oyeranti Olugboyega Alabi, 2023
High emissions of greenhouse gases components have today become a world phenomenon. In Africa, Nigeria is the second-highest emitter of greenhouse gases (GHGs), after South Africa. Carbon dioxide (CO2) emissions constitute the largest source of GHGs; hence it has become a widely discussed and researched subject. This, however, is a negative unintended consequence that has emanated from the growing interdependence of the world economies. One of the major instruments of achieving a global world which also stood as a major determinant of economic growth is trade openness. This paper, therefore, examines the impact and the relationship between trade openness on CO2 emissions in Nigeria. The method employed to achieve the stated objectives is the Autoregressive Distributed Lag (ARDL) cointegration technique, using the annual time series data sourced from the World Bank Development Indicator, 2020, for periods 1980 to 2019. The major findings from the study show that there is an insignificant positive relationship between trade openness on CO2 emissions. Also, there exists an increasing trend of CO2 emissions in Nigeria, while that of trade openness shows fluctuation for the periodic review and this depicts a high vulnerability to external shocks. With these findings, the study recommends that the Nigerian government should be more proactive and tenacious in implementing environmental and trade policies in favour of a cleaner economy. Also, the Nigerian government must become keener toward attracting only investors that will produce clean goods and not compromise on the necessity to improve environmental quality.
Applied Economics and Finance
This paper examines the effects of per capita gross domestic product (GDP), trade openness, and urbanization on the total carbon dioxide emissions of Ghana using time-series annual data from 1960 to 2014. The 55-year period, from 1960 to 2014, covered economic transformation of Ghana from a low-income agrarian country to a lower-middle income country. The analysis used the autoregressive distributed lag method of co-integration. The results showed that per capita GDP, trade openness, and urbanization all significantly influenced both long-run and short-run levels of carbon dioxide emissions in Ghana. However, increased trade openness led to reduced total emissions, while rising per capita GDP and increased urbanization both increased total emissions albeit at different intensity levels.
Journal of Economic Science Research, 2021
The study scrutinized correlation between electricity production, trade, economic growth, industrialization and carbon dioxide emissions in Ghana. Our study disaggregated trade into export and import to spell out distinctive and individual variable contribution to emissions in Ghana. In an attempt to investigate, the study used time-series data set of World Development Indicators from 1971 to 2014. By means of Autoregressive Distributed Lag (ARDL) cointegrating technique, study established that variables are co-integrated and have long-run equilibrium relationship. Results of long-term effect of explanatory variables on carbon dioxide emissions indicated that 1% each increase of economic growth and industrialization, will cause an increase of emissions by 16.9% and 79% individually whiles each increase of 1% of electricity production, trade exports, trade imports, will cause a decrease in carbon dioxide emissions by 80.3%, 27.7% and 4.1% correspondingly. In the pursuit of carbon emissions' mitigation and achievement of Sustainable Development Goal (SDG) 13, Ghana need to increase electricity production and trade exports.
The study sought to examine the effect of economic growth and energy consumption on Environmental pollution in Ghana using annual time series data from the World Bank’s World Development Indicators between the period 1971 and 2013. Impact of other variables like trade openness and urbanization on the emissions of carbon dioxide for the same period mentioned above were also investigated. Econometrically, the study employed the use of Johansen and Juselius (1990) Cointegration Test and the Vector Error Correction Model (VECM) to investigate the feasible long-run and short-run relationship and effects among the variables under consideration. Granger Causality test was also carried out to find the causality among the variables. The study found all the variables to be integrated of order one, I (1) by applying the use of the Augmented Dickey-Fuller test. The Johansen multivariate test for cointegration indicated existence of long run relationship among the series. The study found no evidence of the Environmental Kuznets Curve (EKC) in the long-run. The study found an insignificant negative relationship between CO2 emissions and economic growth in the short run as well as in the long run while Energy consumption was found to have positive and significant impact on CO2 emissions in Ghana. A positive but insignificant relationship was also found between urbanization (UR) and CO2 emissions in the short run and a significant positive effect in in the long run. The study also found a negative relationship between trade openness and carbon dioxide emissions The Granger Causality test revealed a unidirectional causality running from energy consumption and trade openness to CO2 emissions per capita with no feedback effect.
The Environmental Impact of Trade Openness, Energy Consumption and Economic Growth in Malawi
CERN European Organization for Nuclear Research - Zenodo, 2022
Carbon dioxide (CO2) is a primary greenhouse gas and has been on an upward trend over the past four decades at global, regional, and country levels. It has significant economic, health, and environmental costs including global warming. In Malawi, CO2 emissions have grown by 45% over the past four decades from 0.7 million tonnes in 1980 to 1.5 million in 2019. During the same period, exports and imports relative to gross domestic product (GDP) declined, and energy consumption and GDP increased. These trends do not explain the empirical relationship between trade, energy consumption, and GDP on one hand, and CO2 emissions on the other hand. Therefore, this study was aimed at investigating the impact of trade, energy consumption and GDP on CO2 emissions. The study used time series data from 1980 to 2020 and employed the Autoregressive Distributed Lag (ARDL) approach to cointegration to establish the short and long-run relationships. The study established that trade has a positive relationship with CO2 emissions both in the short and long run while GDP has a positive relationship with CO2 emissions the in short run only. The study further established that energy consumption has no significant impact on CO2 emissions. It is recommended that policy should focus on promoting the importation of environmentally friendly technologies rather than limiting the country's openness to trade.
THE NEXUS BETWEEN TRADE OPENNESS AND CO2 EMISSIONS IN SELECTED BIMP-EAGA COUNTRIES
This study is to examine the relationship between trade openness and CO 2 emission in selected BIMP-EAGA countries for the period 1970-2008 using annual time series data. Augmented Dickey Fuller test, Johansen and Juselius test and Vector Error Correction Model have been employed to conduct the analysis. According to the empirical analysis, the longrun relationship is found between trade openness and environmental quality in Malaysia. The findings also indicate that there is a short-run uni-directional relationship in the Philippines. As a result, to lessen the environmental harm, countries become more open in trade in order to gain better transfer of new clean technology, knowledge and skills to improve their industrialization processes and achieve long-term environmental sustainability.
Trade Openness and CO2 Emissions: Evidence of Bangladesh
Asian Journal of Atmospheric Environment
This paper examines the long run cointegrating relation and short run dynamics among carbon emissions, energy consumption, economic growth, urbanization, financial development and openness to trade in Bangladesh by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration. Empirical results for Bangladesh over the period 1975-2010 suggest an evidence of a long-run relationship between the variables at 1% significance level in Bangladesh. The estimated coefficient of energy consumption and urbanization are positive and highly significant indicating that increasing level of urbanization and energy consumption are responsible for CO2 emission in Bangladesh. However, it is also found that an increase in the real GDP per capita tend to reduce carbon emissions per capita. On the other hand, there is no evidence of a causal relationship between carbon emission and financial development and trade openness.