The effects of international trade on structural change and CO₂ emissions

Michael Hübler, Eduard Bukin and Yuting Xi

No 2174, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This article introduces a new econometric model that includes an innovative measure of intersectoral structural change. This model describes the structural convergence (or divergence) of sector share patterns across countries (from the North-South or global perspective) influenced by international trade. The econometric analysis applies panel data estimators with different types of fixed effects to the 2013 and 2016 releases of the World Input-Output Database (WIOD), covering the periods 1995-2009 and 2000-2014. The results show that international trade promotes structural convergence, which is enhanced by sectoral capital intensities. It seems, however, that in this millennium, structural divergence has been fostered by trade-induced specialization in CO2-intensive production.

Keywords: structural change; international trade; CO2 emissions; macro-econometrics; panel data; WIOD (search for similar items in EconPapers)
JEL-codes: C51 F14 F18 O11 O44 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:2174

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