Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco

Hakimi, Abdelaziz; Hamdi, Helmi

doi:10.1016/j.rser.2015.12.280

Cited by 196 publications

(71 citation statements)

References 78 publications

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“…Finally, trade changes the economic structure of the host country under the composition effect. This finding corroborates the works of Grossman and Krueger (1991), Menyah et al (2014), Falvey et al (2013), and Hakimi and Hamdi (2016).…”

Section: A Results Of the Total Samplesupporting

confidence: 92%

External Debt, Investment, and Economic Growth: A Seemingly Unrelated Regression Model for Low-Income Countries

Hakimi

Boussaada

Karmani

2019

Journal of Economic Integration

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This study analyzes whether external debt is a driving factor for investment and economic growth in low-income countries. Using data over the period 2000~2017, we performed an analysis using the 23 countries in the sample and a split-sample analysis wherein we separated less indebted countries (12) from more indebted countries (11). Empirical results of the seemingly unrelated regressions model indicate that external debt significantly decreases investment and economic growth for both the total sample and the sub-samples. In addition, we found that trade openness is positively and significantly related to the level of growth per capita. This positive association is confirmed for both the total sample and the split sample. Findings also indicate that the level of growth exerts a positive and significant effect on investment for the total sample and for less indebted countries.

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Section: A Results Of the Total Samplesupporting

confidence: 92%

External Debt, Investment, and Economic Growth: A Seemingly Unrelated Regression Model for Low-Income Countries

Hakimi

Boussaada

Karmani

2019

Journal of Economic Integration

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“…While GDP showedno significant link with environmental degradation in long run as well as in short-run. The findings of the study werealigned with Grossman and Krueger [11], and Hakimi and Hamdi [6]. Furthermore, the error correction term wastelling 20% speed of adjustment in each year.…”

Section: Empirical Findingssupporting

confidence: 64%

“…As a result, the use of energy increased drastically, pollutant emissions surged and the environmental quality degenerated. All these factors have augmented the susceptibility of the ecosystem specifically in developing countries [6].…”

Section: Literature Reviewmentioning

confidence: 99%

Is Trade Openness Good or Bad for Environment in Pakistan; an ARDL Bounds Testing Approach

Awan¹,

Meo²,

Ghimire³

et al. 2018

Proceedings of the 4th Annual International Conference on Management, Economics and Social Development (ICMESD 2018)

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Abstract. This study explored the relationship between trade openness, foreign direct investment, GDP, and environmental quality in Pakistan by using time series data for time period of 1971-2016.To examine long-run and short-run association among projected variables, we employed autoregressive distributed lag ARDL-bounds testing approach. The findings of the study confirmed a positive and significant long run association between trade openness, foreign direct investment, and environmental degradation in Pakistan. However, there is no relationship between GDP and environmental quality. Policymakers must consider environmental degradation due to trade openness and FDI; further environmental quality should not be ignored. The government must enforce environmental laws on local and international organizations. IntroductionThe worldwide environmental concerns due to adverse climate changes over planet earth have tended world economies towards the use of green energy along with considerable reduction in CO 2 emission [1]. According to the recent studies, the large part of carbon emission is coming from the developing economies due to rapid economic growth. The globalization, where it benefits the developing economies to nurture their economies through reduced investment and trade barriers, opening of technology transfer, and mobilized capital and labor [2].To investigate the real impact of trade on environment, various studies haveanalyzed the dynamic relationship between trade liberalization, energy usage and economic growth. Most of the researchers agreed at first that trade liberalization has improved allocation of domestic resources. Some studies found that liberalization of trade reduced pollution and decreased the use of energy efficiency. For example, the study by Sbia et al. [3] found that liberalization of trade enhanced the flows of new technology which substituted the old technology profoundly overwhelming the use of energy. Conversely, some studies found that liberalization of trade has deteriorated the environmental quality. The study by Lopez [4] shows that trade liberalization was tailed by an escalation in energy-based-events such as manufacturing and transportation that devour heavy energy and yield pollution.The aim of this research is to investigate the economic impacts of the trade openness on the environmental quality in Pakistan. Specifically, the paper inspects whether openness of the trade has harmed the quality of the environment in Pakistan. For empirical results, we used ARDL approach for short run and long run.The structure of the paper is as follows: Section 2 reviews the existing literature on the subject. Section 3 presents the model, methodology and data. Section 4 presents the empirical results and also discussion. The last section concludes the study.

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“…In the Granger causality analysis, they reported a unidirectional causality from energy consumption, trade openness and economic growth to CO 2 emissions and from trade openness to energy consumption and economic growth. Hakimi and Hamdi [26] probed the determinants of CO 2 emissions in Tunisia and Morocco during 1971-2013. They found that FDI, trade openness and capital positively affected CO 2 emissions in both countries' time series and panel analyses.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Openness and CO2 Emissions: Evidence from Tunisia

2019

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We investigated the asymmetrical effects of trade openness on CO2 emissions and the environmental Kuznets curve (EKC) hypothesis in Tunisia during the period 1971–2014. The integration analysis suggests a mixed order of integration and the cointegration analysis corroborates the long- and short-run relationships. The EKC was proved true with a turning point gross domestic product (GDP) of approximately 292.335 billion constant US dollars, and Tunisia was found at the first phase of EKC. Moreover, we corroborate the asymmetrical effects of trade openness on CO2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.

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Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco

Cited by 196 publications

References 78 publications

External Debt, Investment, and Economic Growth: A Seemingly Unrelated Regression Model for Low-Income Countries

External Debt, Investment, and Economic Growth: A Seemingly Unrelated Regression Model for Low-Income Countries

Is Trade Openness Good or Bad for Environment in Pakistan; an ARDL Bounds Testing Approach

Trade Openness and CO2 Emissions: Evidence from Tunisia

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