CO2 Emissions, Trade Openness and GDP Percapita: Bangladesh Perspective

Rubaiya Zaman

MPRA Paper from University Library of Munich, Germany

Abstract: In recent decades, the relationship between international trade, environmental problems and growth remains controversial topics for the economic literature. This paper mainly deals with the interactions among these three key issues of Bangladesh economy. Johansen’s cointegrating methods have been used to analyze the interaction. Estimation shows one cointegrating vector exists in the model. Findings suggest that the adjustment speed is faster for trade openness while CO2 emissions and GDP per capita have slow adjustment speed of restoration towards the long-run equilibrium. Granger causality test indicates the apparent bidirectional causal link between trade openness and GDP per capita but no causal link has been found from trade openness to CO2 emissions and from GDP per capita to CO2 emissions in both short run and long-run. Except GDP per capita and trade there are other factors which cause these emissions, such as population, but they are not included in the present model. The overall estimation implies that the current situation needs to draw attention to lower the existing emissions without blaming the international trade relations for causing CO2 emissions and focus more on the growth performance to increase the GDP per capita.

Keywords: CO2 Emissions; Trade openness; GDP Percapita (search for similar items in EconPapers)
JEL-codes: F18 (search for similar items in EconPapers)
Date: 2012-05-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/48515/1/MPRA_paper_48515.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:48515

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().