Trade Openness, Economic Growth, and Environmental Degradation in Asian Developing Countries
The two major challenges facing the world today are economic development and environmental quality. Developing countries in particular face the difficult trade-off between economic growth and environmental degradation. This paper examines the effects of trade openness and economic growth on CO2 emission using a theoretical trade model. The results indicate that the increase of trade openness, including exports and imports, intensifies environmental degradation. Yet, the increase in imports resulting in the advance of the technology has positive effect on environmental quality, implying a possible existence of the Environmental Kuznets Curve (EKC). This paper explores these findings using panel data frame work based on annually data from developing countries in Asia over the time period of 1986-2013. The results show that trade openness and economic growth intensify CO2 emission. However ,the results do not support the validity of the EKC.The findings put emphasis on the need for government intervention with stringent environmental policies, such as command-and-control regulation or market-based environmental regulation, with the view to reducing emission and creating sustainable development.
1 broadside. 48"W x 36"H
Kalamazoo, Mich. : Kalamazoo College
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