Economic growth, energy consumption, and trade openness nexus: Evidence from net energy importing middle-income countries

Abstract

The study explores both the long- and short-run liaisons between three conceptual dimensions: economic growth, energy consumption, and trade openness in 29 net energy importing middle-income economies using annual data from 1990 to 2019. We hereby assess ARDL models which examine the long-run links by integrations in between these three conceptual variables, and additionally Dumitrescu-Hurlin and Granger causality tests for panel and individual country models, respectively. For panel country samples, we reveal bidirectional causality connection between trade openness and economic growth along with unidirectional causalities from economic growth to energy consumption and from energy consumption to trade openness in the short run. Bidirectional positive feedback relationships stand between economic growth- energy consumption and trade openness- energy consumption in the full sample and the upper middle-middle economies subsample in the long run. Findings for individual country estimations reveal significant long-run relationships between energy consumption and economic growth in 12, energy consumption -and trade openness in 6, and economic growth -and trade openness in 9 of the middle-income economies examined.

The Linkage between Truck Transport, Trade Openness, Economic Growth, and CO₂ Emissions within the Scope of Green Deal Action Plan: An Empirical Investigation from Türkiye

“…In this sense, some of these manuscripts discuss the relationship between environmental pollution, economic growth and trade openness by testing the Environmental Kuznets Curve (EKC) hypothesis. [7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24].…”

The Relationship between Trade Liberalization, Sea Freight, and Carbon-Dioxide Emissions within the Perspective of EKC: The Case of Mexico

“…Besides, the relationship between energy consumption, economic growth, and environment pollution are taken into consideration as well in order to perform the EKC hypothesis. Some of these studies investigate the environmental degradation, economic growth, and energy consumption, through testing the Environmental Kuznets Curve (EKC) hypothesis in the academic literature (Acaravci and Ozturk, 2010;Bese and Kalayci, 2021;Bahadir, 2022a;Bahadir, 2022b;Dursun, 2022a;Dursun, 2022b;Kalayci, 2021;Kalayci and Yazici, 2016;Ozkan et al, 2019;Ozturk and Acaravci, 2010;Ozturk and Acaravci, 2013;Ozturk, et al, 2016;Ozturk, et al, 2021;Sarigul and Apak, 2022;Tarazkar, et al, 2021). If it is taken into account the both trade liberalization, sea transportation as independent variables and carbon-dioxide emissions as dependent variable in terms of testing the EKC hypothesis for Mexico, there is no study by employing three variables together in the academic literature.…”