Impact of Trade Openness on Environment in China

Wen, Jun; Mahmood, Hamid; Zakaria, Muhammad

doi:10.3846/jbem.2020.12050

Cited by 68 publications

(48 citation statements)

References 60 publications

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“…The economic theory behind this finding basically has indirect relationship. An increase in production improves the trade balance but at the same time it also causes to increase carbon emissions as globalization in the perspective of trade is harming the environment by releasing the carbon emissions (Raza & Shah, 2018;Sun et al, 2019;Mahmood et al, 2020;Mutascu & Sokic, 2020). Though an increase in production causes to significantly improve the international trade but it can deteriorate the environment (Andersson, 2018;Hasanov et al, 2018).…”

Section: Resultsmentioning

confidence: 99%

“…Basically, when the process of an increase in exports takes place, it results in increased carbon emissions (Raza & Shah, 2018). In other words, international trade not only represents the improvement the economic structure but also indicate the deterioration of the environment (Raza & Shah, 2018;Sun et al, 2019;Mahmood et al, 2020). Increase in productivity has significant impact on exports, but this will leads to impact on environment quality (Huang & Liu, 2019).…”

Section: Introductionmentioning

confidence: 99%

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The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

Rehman

Chaudhry

Arshed

et al. 2020

RAMSS

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This research study is an attempt to explore the nonlinear relationship between domestic and foreign income and deficit in the trade balance for a sample of 13 high deficit Asian countries from 1990 to 2019. Furthermore, the study also moderates the role of financial development and carbon emissions with trade balance. The study results validated the existence of a nonlinear relationship between trade balance and domestic and foreign income. For this purpose, three different types of model are formulated. The first model was of the benchmark type, which contains only the domestic and foreign income effect, while in the other two models, the role of financial development and carbon emissions is also included. The estimated results evinced the existence of U shape relationship for domestic income and inverted U shape curve for World income. The results revealed that it would be very suitable for selected countries to boost up domestic income. Because of it, the deficit in trade balance will start to decline. The financial development and carbon emissions are found to be a significant contributor to reduce the deficit in the trade balance.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

Rehman

Chaudhry

Arshed

et al. 2020

RAMSS

View full text Add to dashboard Cite

show abstract

“…Meanwhile, trade openness is anticipated to positively influence CO 2 emissions. Jun et al (2020) stated that trade openness increases domestic production and emits more carbon emissions.…”

Section: Methodology Model Specificationmentioning

confidence: 99%

The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve

2020

JEM

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This study aims to examine the expansion effects of the service sector on the carbon emission in a dynamic nonlinear model. Using data of 34 Asian countries ranging from 1990 to 2016, this study adopts non-linear model of the Environmental Kuznets Curve and the GMM estimator. The finding provides evidence of an N-shape association between the service sector and carbon emission which indicates that the growth of the service sector fails to reduce the carbon emission perpetually. The elasticity of urbanisation and trade openness are found to be positive which indicates that an increase in urbanisation and trade openness significantly intensifies carbon emission. Meanwhile, an increase in the ageing population tends to mitigate carbon emission in Asian countries. This current study facilitates the understanding of the impact of the services sector on carbon emission as well providing a solid ground in designing a policy that incorporates the environmental standard in line with increased economic growth.

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“…Concerning the relationship between pollution and trade openness, there seems to be no consensus. Across the several countries studied, pollution levels have increased with increased trade openness (Al-Mulali et al , 2016; Jun et al , 2020; Lin, 2017; Wen and Dai, 2020). However, few believe that the increase in trade openness reduces pollution (Ghazouani et al , 2020; Kohler, 2013; Shahbaz et al , 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of economic growth, trade openness and manufacturing on CO2 emissions in India: an autoregressive distributive lag (ARDL) bounds test approach

Karedla

Mishra

Patel

2021

JEFAS

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PurposeThe purpose of this study is to examine the impact of economic growth, trade openness and manufacturing on CO2 emissions in India.Design/methodology/approachThe study employed autoregressive distributive lag (ARDL) bounds test approach and uses CO2 emissions, trade, manufacturing and GDP per capita to examine the relationship using an annual time series data from World Development Indicators during 1971 to 2016.FindingsResults depict that there exists a long-run relationship between CO2 emissions and other variables. Trade openness significantly reduces CO2 emissions, whereas manufacturing and GDP have a significant and positive impact on CO2 in the long run.Research limitations/implicationsThe findings of the study contribute to the body of knowledge by providing new evidence on the relationship between developmental metrics and the environment. These findings are critical for policymakers and regulatory bodies to focus on economic development without jeopardizing environmental degradation.Practical implicationsIn order to keep its commitment to sustainability, India needs to develop policies that encourage cleaner production methods and establishment of non-polluting industries. Simultaneously, it must disincentivize industries that emit CO2 by policy frameworks such as carbon taxes, pollution taxes or green taxes.Originality/valueNone of studies examine at how these environmental factors interact in India. Kilavuz and Dogan (2020) used the same variables, but their scope was limited to Turkey. As a result, the study is the first to examine this relationship for India, contributing to the body of knowledge on economic growth, manufacturing, trade openness and environmental concerns.

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Impact of Trade Openness on Environment in China

Cited by 68 publications

References 60 publications

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve

The impact of economic growth, trade openness and manufacturing on CO2 emissions in India: an autoregressive distributive lag (ARDL) bounds test approach

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