Assessing the Economic, Social and Environmental Effects of Trade Openness: An OECD Analysis

Nassira Werghemmi (), Abderraouf Mtiraoui () and Mongi Lassoued
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Nassira Werghemmi: USO - جامعة سوسة = Université de Sousse = University of Sousse
Abderraouf Mtiraoui: MOFID-Université de Sousse, USO - جامعة سوسة = Université de Sousse = University of Sousse
Mongi Lassoued: USO - جامعة سوسة = Université de Sousse = University of Sousse

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Abstract: This study aims to examine the effects of trade liberalization on economic growth, income inequality, and CO₂ emissions, while also testing for the existence of both social and environmental Kuznets curves. To this end, three econometric models are employed. The first model analyzes the impact of trade openness on economic growth, the second investigates its effect on income inequality, and the third focuses on the relationship between trade openness and CO₂ emissions. The analysis is conducted using panel data for 24 OECD countries over the period 2005-2022. The methodological approach relies on panel data techniques, with estimations carried out using the fixed effects method. The empirical findings indicate that greater openness to international trade has a positive and statistically significant impact on economic growth by expanding markets, generating economies of scale, and enhancing productive efficiency in the countries studied. Furthermore, trade liberalization appears to increase income inequality, particularly between skilled and unskilled workers. From an environmental perspective, trade openness promotes the adoption of cleaner technologies, thereby contributing to a reduction in CO₂ emissions. Finally, the results confirm the existence of the Kuznets curve, revealing both U-shaped and inverted U-shaped relationships between GDP, income inequality, and CO₂ emissions within the estimated models.

Keywords: Kuznets curve; OECD countries; Internal income inequality; Fixed effects method; Economic growth; CO₂ emissions (search for similar items in EconPapers)
Date: 2026
Note: View the original document on HAL open archive server: https://hal.science/hal-05507882v1
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Published in Science of Law, inPress, 2026 (2), pp.35-43. ⟨10.55284/m2606706⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05507882

DOI: 10.55284/m2606706

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