Trade Openness, Economic Growth, and Environmental Degradation in Asian Developing Countries

This paper examines the effects of trade openness and economic growth on CO2 emission using a theoretical trade model. The theoretical results indicate that an increase in trade openness intensifies environmental degradation, while an increase in imports may result in advancement of technology that...

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Bibliographic Details
Published in:The journal of applied business and economics 2018-09, Vol.20 (5), p.61-72
Main Authors: Duong, Thao, Hultberg, Patrik T
Format: Article
Language:English
Subjects:
Air pollution
Carbon dioxide
Consumers
Developing countries
Econometrics
Economic development
Economic growth
Economic models
Environmental policy
Environmental quality
Environmental regulations
Environmental tax
Equilibrium
Exports
GDP
Global economy
Government revenue
Gross Domestic Product
Hypotheses
Industrialized nations
International trade
LDCs
Manufacturing
Natural resources
Outdoor air quality
Studies
Trade liberalization
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Summary:This paper examines the effects of trade openness and economic growth on CO2 emission using a theoretical trade model. The theoretical results indicate that an increase in trade openness intensifies environmental degradation, while an increase in imports may result in advancement of technology that has positive effect on environmental quality, implying a possible existence of the Environmental Kuznets Curve (EKC). This paper explores these findings using panel data framework based on annual data from Asian developing comtries (1986-2013). The empirical results show that trade openness and economic growth intensify CO2 emission. However, the results do not validate the EKC.
ISSN:1499-691X
1499-691X
DOI:10.33423/jabe.v20i5.361