Abstract

Purpose – This study is an empirical study on the relationship between climate change and the export and import volumes of the Gyeongnam Region. Design/Methodology/Approach – In this study, we used 26 monthly data from the climate change index, and the export and import volumes of Gyeongnam in Korea from August 31, 2020 to September 30, 2022. We attempt to analyze the mutual influence and causality in the climate change index, the export volume, and the import volume of Gyeongnam in Korea. We wish to analyze the extent of cross-influence. We employ a variance decomposition function based on the VAR model, as well as an impulse response after a cointegration test and unit root test of the climate change index, the export volume, and the import volume of Gyeongnam. Findings – There is at least one cointegration among the first differential data of the climate change index, the export volume, and the import volume of Gyeongnam. Finally, the export volume of Gyeongnam does Granger Cause climate change. Research Implications – This study differs in that it uses the climate change index and climate change. It has limitations in that the study sample is limited and the study period is short.

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