Relationship between Economic Growth, Trade and Environment: Evidence from D8 Countries

Abbas Rezazadeh Karsalari (), Mohsen Mehrara (), Maysam Musai () and Mosa Mohammadi

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014, vol. 4, issue 2, 320-326

Abstract: This paper investigates the causal relationship between environmental quality, economic growth and trade in D8 countries by using panel unit root tests and panel cointegration analysis for the period 1970-2011. The results suggest that there is a long-run relationship between these variables. Emissions have a positive long-run relationship with per capita income and trade. Moreover, the results show a unidirectional strong causality from economic growth to environment in these countries. We also find no causality between emissions and trade.

Keywords: Unit root; Cointegration; Granger Causality; Environmental quality; Trade; Economic Growth (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:4:y:2014:i:2:p:320-326

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