673
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Effects of trade openness on environmental quality: evidence from developing countries

&
Article: 2339610 | Received 28 Jan 2022, Accepted 02 Apr 2024, Published online: 10 Apr 2024

References

  • Ang, J. B. (2009). CO2 emissions, research and technology transfer in China. Ecological Economics, 68(10), 2658–22. https://doi.org/10.1016/j.ecolecon.2009.05.002
  • Antweiler, W., Copeland, B. R., & Taylor, M. S. (2001). Is free trade good for the environment? American Economic Review, 91(4), 877–908. https://doi.org/10.1257/aer.91.4.877
  • Atici, C. (2009). Carbon emissions in central and Eastern Europe: Environmental kuznets curve and implications for sustainable development. Sustainable Development, 17(3), 155–160. https://doi.org/10.1002/sd.372
  • Atici, C. (2012). Carbon emissions, trade liberalization, and the Japan–ASEAN interaction: A group-wise examination. Journal of the Japanese and International Economies, 26(1), 167–178. https://doi.org/10.1016/j.jjie.2011.07.006
  • Aydin, M., & Turan, Y. E. (2020). The influence of financial openness, trade openness, and energy intensity on ecological footprint: Revisiting the environmental kuznets curve hypothesis for BRICS countries. Environmental Science and Pollution Research, 27(34), 43233–43245. https://doi.org/10.1007/s11356-020-10238-9
  • Baek, J., Cho, Y., & Koo, W. W. (2009). The environmental consequences of globalization: A country-specific time-series analysis. Ecological Economics, 68(8–9), 2255–2264. https://doi.org/10.1016/j.ecolecon.2009.02.021
  • Baltagi, B. H., Demetriades, P. O., & Law, S. H. (2007). Financial development, openness and institutions: Evidence from panel data (No.0022). World Economy Finance Research Programme, World Economy Finance Research.
  • Beck, T. (2002). Financial development and international trade: Is there a link? Journal of International Economics, 57(1), 107–131. https://doi.org/10.1016/S0022-1996(01)00131-3
  • Bilgili, F., Koçak, E., & Bulut, Ü. (2016). The dynamic impact of renewable energy consumption on CO2 emissions: A revisited environmental kuznets curve approach. Renewable and Sustainable Energy Reviews, 54, 838–845. https://doi.org/10.1016/j.rser.2015.10.080
  • Birdsall, N., & Wheeler, D. (1993). Trade policy and industrial pollution in Latin America: Where are the pollution havens? The Journal of Environment & Development, 2(1), 137–149. https://doi.org/10.1177/107049659300200107
  • Blanchard, O., Gollier, C., & Tirole, J. (2023). The portfolio of economic policies needed to fight climate change. Annual Review of Economics, 15(1), 689–722. https://doi.org/10.1146/annurev-economics-051520-015113
  • Blanchard, O. J., Gollier, C., & Tirole, J. (2022). Fighting the war against climate change (working paper no.1360). Toulouse School of Economics. https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2022/wp_tse_1360.pdf
  • Chebbi, H. E., Olarreaga, M., & Zitouna, H. (2011). Trade openness and CO2 emissions in Tunisia. Middle East Development Journal, 3(1), 29–53. https://doi.org/10.1142/S1793812011000314
  • Chinn, M. D., & Ito, H. (2002). Capital account liberalization, institutions and financial development: Cross country evidence (no. w8967). National Bureau of Economic Research. https://www.nber.org/papers/w8967.
  • Chinn, M. D., & Ito, H. (2006). What matters for financial development? Capital controls, institutions, and interactions. Journal of Development Economics, 81(1), 163–192. https://doi.org/10.1016/j.jdeveco.2005.05.010
  • Chinn, M. D., & Ito, H. (2019). The chinn-ito index – a de Jure measure of financial openness. http://web.pdx.edu/~ito/Chinn-Ito_website.htm.
  • Chipman, H., George, E. I., McCulloch, R. E., Clyde, M., Foster, D. P., & Stine, R. A. (2001). The practical implementation of Bayesian model selection. Lecture Notes-Monograph Series, 65–134. https://doi.org/10.1214/lnms/1215540964.
  • Choi, E., Heshmati, A., & Cho, Y. (2010). An empirical study of the relationships between CO2 emissions, economic growth and openness (no. 5304). IZA Institute of Labor Economics. https://ssrn.com/abstract=1708750.
  • Cole, M. A., & Elliott, R. (2003). Determining the trade–environment composition effect: The role of capital, labor and environmental regulations. Journal of Environmental Economics and Management, 46(3), 363–383. https://doi.org/10.1016/S0095-0696(03)00021-4
  • Cole, M. A., Elliott, R. J., & Fredriksson, P. G. (2006). Endogenous pollution havens: Does FDI influence environmental regulations? The Scandinavian Journal of Economics, 108(1), 157–178. https://doi.org/10.1111/j.1467-9442.2006.00439.x
  • David, M. A., Mlachila, M. M., & Moheeput, A. (2014). Does openness matter for financial development in Africa? (No.14/94). International Monetary Fund. https://doi.org/10.5089/9781498359290.001.
  • DiVita, G. (2009). Legal families and environmental protection: Is there a causal relationship? Journal of Policy Modeling, 31(5), 694–707. https://doi.org/10.1016/j.jpolmod.2009.01.003
  • EPA (U.S. Environmental Protection Agency). (2019). Greenhouse gas reporting program. https://www.epa.gov/ghgreporting
  • Feldkircher, M., & Zeugner, S. (2009). Benchmark priors revisited: On adaptive shrinkage and the supermodel effect in Bayesian model averaging. International Monetary Fund.
  • Fernandez, C., Ley, E., & Steel, M. F. (2001a). Benchmark priors for Bayesian model averaging. Journal of Applied Econometrics, 100(2), 381–427. https://doi.org/10.1016/S0304-4076(00)00076-2
  • Fernandez, C., Ley, E., & Steel, M. F. (2001b). Model uncertainty in cross‐country growth regressions. Journal of Applied Econometrics, 16(5), 563–576. https://doi.org/10.1002/jae.623
  • Fragoso, T. M., Bertoli, W., & Louzada, F. (2018). Bayesian model averaging: A systematic review and conceptual classification. International Statistical Review, 86(1), 1–28. https://doi.org/10.1111/insr.12243
  • Frankel, J. A. (2009). Environmental effects of international trade (no. 31). Harvard Kennedy School, Harvard University.
  • Frankel, J. A., & Romer, D. H. (1999). Does trade cause growth? American Economic Review, 89(3), 379–399. https://doi.org/10.1257/aer.89.3.379
  • Frankel, J. A., & Rose, A. K. (2005). Is trade good or bad for the environment? Sorting out the causality. Review of Economics and Statistics, 87(1), 85–91. https://doi.org/10.1162/0034653053327577
  • George, E., & Foster, D. P. (2000). Calibration and empirical Bayes variable selection. Biometrika, 87(4), 731–747. https://doi.org/10.1093/biomet/87.4.731.
  • Glaeser, E. L., & Shleifer, A. (2002). Legal origins. The Quarterly Journal of Economics, 117(4), 1193–1229. https://doi.org/10.1162/003355302320935016
  • Goldsmith, R. W. (1969). Financial structure and development. Yale University Press. https://doi.org/10.2307/2230134.
  • Grossman, G. M., & Krueger, A. B. (1991). Environmental impacts of a North American free trade agreement (no. w3914). National Bureau of economic research. https://doi.org/10.3386/w3914.
  • Harrison, A. (1995). Openness and growth: A time-series, cross-country analysis for developing countries. Journal of Development Economics, 48(2), 419–447. https://doi.org/10.1016/0304-3878(95)00042-9.
  • Harrison, A. E., & Eskeland, G. (2002). Moving to greener pastures? Multinationals and the pollution-haven hypothesis National Bureau of Economic Research. https://doi.org/10.3386/w8888.
  • He, J. (2006). Pollution haven hypothesis and environmental impacts of foreign direct investment: The case of industrial emission of sulfur dioxide (SO2) in Chinese provinces. Ecological Economics, 60(1), 228–245. https://doi.org/10.1016/j.ecolecon.2005.12.008
  • Hinne, M., Gronau, Q. F., van den Bergh, D., & Wagenmakers, E. J. (2020). A conceptual introduction to Bayesian model averaging. Advances in Methods and Practices in Psychological Science, 3(2), 200–215. https://doi.org/10.1177/2515245919898657
  • Hoeting, J. A., Madigan, D., Raftery, A. E., & Volinsky, C. T. (1999a). Bayesian model averaging: A tutorial. Statistical Science, 382–401. https://doi.org/10.1214/ss/1009212519.
  • Hoeting, J. A., Madigan, D., Raftery, A. E., & Volinsky, C. T. (1999b). Bayesian model averaging: A tutorial (with comments by M. Clyde, David Draper and EI George, and a rejoinder by the authors). Statistical Science, 14(4), 382–417. https://doi.org/10.1214/ss/1009212519.
  • IPCC (Intergovernmental Panel on Climate Change). (2007). Climate change 2007: synthesis report. Contribution of working groups I, II and III to the fourth assessment report of the intergovernmental panel on climate change, 104. https://www.ipcc.ch/site/assets/uploads/2018/02/ar4_syr_full_report.pdf
  • Jalil, A., & Mahmud, S. F. (2009). Environment kuznets curve for CO2 emissions: A cointegration analysis for China. Energy Policy, 37(12), 5167–5172. https://doi.org/10.1016/j.enpol.2009.07.044
  • Jebli, M. B., Youssef, S. B., & Ozturk, I. (2016). Testing environmental kuznets curve hypothesis: The role of renewable and non-renewable energy consumption and trade in OECD countries. Ecological Indicators, 60, 824–831. https://doi.org/10.1016/j.ecolind.2015.08.031
  • Jones, L. E., & Manuelli, R. E. (1995). A positive model of growth and pollution controls (no. w5205). National Bureau of Economic Research. https://doi.org/10.3386/w5205.
  • Karimu, A., & Marbuah, G. (2017). Re-examining the financial development-openness nexus: Nonparametric evidence for developing countries. Journal of Applied Economics, 20(2), 373–394. https://doi.org/10.1016/S1514-0326(17)30017-X
  • Kass, R. E., & Wasserman, L. (1995). A reference Bayesian test for nested hypotheses and its relationship to the schwarz criterion. Journal of the American Statistical Association, 90(431), 928–934. https://doi.org/10.1080/01621459.1995.10476592
  • Kearsley, A., & Riddel, M. (2010). A further inquiry into the pollution haven hypothesis and the environmental kuznets curve. Ecological Economics, 69(4), 905–919. https://doi.org/10.1016/j.ecolecon.2009.11.014
  • Khan, S. A. R., Yu, Z., Belhadi, A., & Mardani, A. (2020). Investigating the effects of renewable energy on international trade and environmental quality. Journal of Environmental Management, 272, 111089. https://doi.org/10.1016/j.jenvman.2020.111089
  • Kock, C. J., & Min, B. S. (2016). Legal origins, corporate governance, and environmental outcomes. Journal of Business Ethics, 138(3), 507–524. https://doi.org/10.1007/s10551-015-2617-1
  • Koengkan, M., Santiago, R., Fuinhas, J. A., & Marques, A. C. (2019). Does financial openness cause the intensification of environmental degradation? New evidence from Latin American and Caribbean countries. Environmental Economics and Policy Studies, 21(4), 507–532. https://doi.org/10.1007/s10018-019-00240-y
  • Law, S. H., & Demetriades, P. (2006). Openness, institutions and financial development (no. 0012). World Economy and Finance Research Programme, Birkbeck, University of London. https://doi.org/10.2139/ssrn.941387.
  • Leamer, E. E. (1978). Specification searches: Ad Hoc inference with nonexperimental data. Wiley.
  • Le, T. H., Chang, Y., & Park, D. (2016). Trade openness and environmental quality: International evidence. Energy Policy, 92, 45–55. https://doi.org/10.1016/j.enpol.2016.01.030
  • Lee, H., & Roland-Holst, D. (1997). The environment and welfare implications of trade and tax policy. Journal of Development Economics, 52(1), 65–82. https://doi.org/10.1016/S0304-3878(96)00439-7
  • Ley, E., & Steel, M. F. (2009). On the effect of prior assumptions in Bayesian model averaging with applications to growth regression. Journal of Applied Econometrics, 24(4), 651–674. https://doi.org/10.1002/jae.1057
  • Liang, F., Paulo, R., Molina, G., Clyde, M. A., & Berger, J. O. (2008). Mixtures of g priors for Bayesian variable selection. Journal of the American Statistical Association, 103(481), 410–423. https://doi.org/10.1198/016214507000001337
  • Liddle, B. (2001). Free trade and the environment-development system. Ecological Economics, 39(1), 21–36. https://doi.org/10.1016/S0921-8009(01)00215-4
  • Madigan, D., & Raftery, A. E. (1994). Model selection and accounting for model uncertainty in graphical models using Occam’s window. Journal of the American Statistical Association, 89(428), 1535–1546. https://doi.org/10.1080/01621459.1994.10476894
  • Madigan, D., York, J., & Allard, D. (1995). Bayesian graphical models for discrete data. International Statistical Review / Revue Internationale de Statistique, 63. https://doi.org/10.2307/1403615. (2) 215
  • Managi, S. (2004). Trade liberalization and the environment: Carbon dioxide for 1960-1999. Economics Bulletin, 17(1), 1–5. http://www.accessecon.com/pubs/EB/2004/Volume17/EB-03Q20005A.pdf.
  • Managi, S., Hibiki, A., & Tsurumi, T. (2008). Does trade liberalization reduce pollution emissions? (no. 08013). Research Institute of Economy, Trade and Industry (RIETI). https://www.rieti.go.jp/jp/publications/dp/08e013.pdf.
  • Managi, S., Hibiki, A., & Tsurumi, T. (2009). Does trade openness improve environmental quality? Journal of Environmental Economics and Management, 58(3), 346–363. https://doi.org/10.1016/j.jeem.2009.04.008
  • McKinnon, R. I. (1973). Money and capital in economic development. Brookings Institution Press.
  • Mutascu, M. (2018). A time-frequency analysis of trade openness and CO2 emissions in France. Energy Policy, 115, 443–455. https://doi.org/10.1016/j.enpol.2018.01.034
  • Nasir, M., & Rehman, F. U. (2011). Environmental kuznets curve for carbon emissions in Pakistan: An empirical investigation. Energy Policy, 39(3), 1857–1864. https://doi.org/10.1016/j.enpol.2011.01.025
  • Nordhaus, W. D. (1991). To slow or not to slow: The economics of the greenhouse effect. The Economic Journal, 101(407), 920–937. https://doi.org/10.2307/2233864
  • Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(S1), 653–670. https://doi.org/10.1111/1468-0084.61.s1.14.
  • Porta, R. L., Lopez de Silanes, F., & Shleifer, A. (2008). The economic consequences of legal origins. Journal of Economic Literature, 46(2), 285–332. https://doi.org/10.1257/jel.46.2.285
  • Porta, R. L., Lopez de Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113–1155. https://doi.org/10.1086/250042
  • Raftery, A. E. (1988). Approximate Bayes factors for generalized linear models (No. 121). The University of Washington, Department of Statistics. https://stat.uw.edu/sites/default/files/files/reports/1988/tr121.pdf.
  • Raftery, A. E. (1993). Bayesian model selection in structural equation models. Sage Focus Editions, 154, 163–180. https://sites.stat.washington.edu/raftery/Research/PDF/bollen1993.pdf.
  • Raftery, A. E., Gneiting, T., Balabdaoui, F., & Polakowski, M. (2005). Using Bayesian model averaging to calibrate forecast ensembles. Monthly Weather Review, 133(5), 1155–1174. https://doi.org/10.1175/MWR2906.1
  • Raftery, A. E., Madigan, D., & Hoeting, J. A. (1997). Bayesian model averaging for linear regression models. Journal of the American Statistical Association, 92(437), 179–191. https://doi.org/10.1080/01621459.1997.10473615
  • Rajan, R. G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. https://doi.org/10.1016/S0304-405X(03)00125-9
  • Rock, M. T. (1996). Pollution intensity of GDP and trade policy: Can the World bank be wrong? World Development, 24(3), 471–479. https://doi.org/10.1016/0305-750X(95)00152-3
  • Sebri, M., & Ben-Salha, O. (2014). On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: Fresh evidence from BRICS countries. Renewable and Sustainable Energy Reviews, 39, 14–23. https://doi.org/10.1016/j.rser.2014.07.033
  • Shafiei, S., & Salim, R. A. (2014). Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis. Energy Policy, 66, 547–556. https://doi.org/10.1016/j.enpol.2013.10.064
  • Shahbaz, M., Nasreen, S., Ahmed, K., & Hammoudeh, S. (2016). Trade openness–carbon emissions nexus: The importance of turning points of trade openness for country panels. Energy Economics, 61, 221–232. https://doi.org/10.1016/j.eneco.2016.11.008.
  • Shaw, E. S. (1973). Financial deepening in economic development. Oxford University Press: Oxford. https://doi.org/10.2307/2978421.
  • Tamazian, A., Chousa, J. P., & Vadlamannati, K. C. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37(1), 246–253. https://doi.org/10.1016/j.enpol.2008.08.025
  • Tamazian, A., & Rao, B. B. (2010). Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32(1), 137–145. https://doi.org/10.1016/j.eneco.2009.04.004
  • Tobey, J. A. (1990). The effects of domestic environmental policies on patterns of world trade: An empirical test. Kyklos, 43(2), 191–209. https://doi.org/10.1111/j.1467-6435.1990.tb00207.x
  • Trabelsi, M., & Cherif, M. (2017). Capital account liberalization and financial deepening: Does the private sector matter? The Quarterly Review of Economics and Finance, 64, 141–151. https://doi.org/10.1016/J.QREF.2016.08.001
  • Wasserman, L. (2000). Bayesian model selection and model averaging. Journal of mathematical psychology, 44(1), 92–107. https://doi.org/10.1006/jmps.1999.1278
  • Westerlund, J. (2005). A panel CUSUM test of the null of cointegration. Oxford Bulletin of Economics and Statistics, 67(2), 231–262. https://doi.org/10.1111/j.1468-0084.2004.00118.x
  • You, W. H., Zhu, H. M., Yu, K., & Peng, C. (2015). Democracy, financial openness, and global carbon dioxide emissions: Heterogeneity across existing emission levels. World Development, 66, 189–207. https://doi.org/10.1016/j.worlddev.2014.08.013
  • Zafar, M. W., Shahbaz, M., Sinha, A., Sengupta, T., & Qin, Q. (2020). How does renewable energy consumption contribute to environmental quality? The role of education in OECD countries. Journal of Cleaner Production, 268, 122149. https://doi.org/10.1016/j.jclepro.2020.122149.