The Role of Export Quality in Energy-Growth Nexus: Evidence from Newly Industrialized Countries

Energy has a significant function in the sustainable development strategy of every country. Over the last three decades, scholars have attempted to examine energy-growth nexus in different countries and country groups using various explanatory variables. Trade openness based on the volume of trade has been commonly utilized in these estimations. However, recently, some scholars have highlighted the importance of export quality in the economic growth of nations, but there is no empirical evidence to support this claim. In this context, this empirical research intends to expand the energy-growth nexus by using export quality as an explanatory variable instead of trade openness in the sample of 10 newly industrialized countries (NICs). The empirical results verified that export quality has a positive and crucial role in the economic growth of NICs. Based on these novel findings, the study discussed policy implications to enhance export quality for achieving sustainable growth.

Automated summary

Energy plays a significant role in the sustainable development strategy of every country. Recent empirical research has shown that export quality has a positive and crucial impact on the economic growth of nations. Therefore, enhancing export quality has policy implications for achieving sustainable growth.