Journal
JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
Volume 28, Issue 3, Pages 317-330Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/09638199.2018.1534878
Keywords
Trade openness; urbanization; CO2 emissions; PMG estimator; middle-income countries
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Funding
- Natural Science Foundation of Hunan Province of China [2017JJ3293]
- National Natural Science Foundation of China [71703140]
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Using the Pooled Mean Group (PMG) approach of Pesaran, Shin, and Smith [1999. Pooled Mean Group Estimation of Dynamic Heterogeneous Panels. Journal of the American Statistical Association 94 (446): 621-634], this article attempts to empirically examine the heterogeneous effects of trade openness and urbanization on CO2 emissions in 55 middle-income countries over the period from 1992 to 2012. We find that trade openness has a benign effect on the environment in the short run, but a harmful effect in the long run. Meanwhile, our results show that urbanization has a negative and significant impact on CO2 emissions both in the short and long run, implying that urbanization improves environmental quality. The results are robust even after controlling for a number of factors such as economic or non-economic factors.
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