Impact Of Trade Openness Research Articles

Environmental pollution, trade openness and the health of middle-aged and elderly people: an analysis of threshold effect based on data from 111 prefecture-level cities in China

BackgroundEnvironmental pollution seriously endangers people’s physical and mental health, especially the health of middle-aged and elderly people. Environmental pollution, trade openness, and population health are interconnected. Environmental pollution may have a nonlinear impact on health, and the impact of trade openness on the health effects of environmental pollution may not be a simple strengthening or weakening effect. However, few studies have used threshold effects model to explore the nonlinear mechanisms of environmental pollution’s impact on health in China. As a result, this study incorporates trade openness into the research framework on the health effects of environmental pollution, aiming to study the mechanism of environmental pollution on health.MethodsUsing the China Health and Retirement Longitudinal Study (CHARLS) data from 2013 to 2020 and the data of 111 prefecture-level cities in China, we combine two-way fixed-effects models and threshold models to explore the effects of environmental pollution on the health of middle-aged and elderly people and the role of trade openness in the path of environmental pollution affecting health.ResultsEnvironmental pollution impairs the health of middle-aged and elderly people, and there is a single threshold effect and regional heterogeneity in this negative impact. Trade openness has the effect of first weakening and then strengthening in the inhibitory effect of environmental pollution on health.ConclusionThe negative impact of environmental pollution on health has regional heterogeneity, and there is a nonlinear relationship between environmental pollution and the health of middle-aged and elderly people. The health effect of environmental pollution is mainly long-term effect, and trade openness has a threshold effect on the impact of environmental pollution on health. Therefore, instead of adopting a one-size-fits-all policy, environmental and economic policies should be customized according to the degree of environmental pollution, trade openness, and regional variations, so as to safeguard the health of middle-aged and elderly individuals through effective environmental governance.

The impact of freedom of expression and belief on CO2 emissions: An examination of the group of seven

Growing concerns about the level of CO2 emissions have made identifying the key drivers of the emission issue a critical agenda item. These developments have turned identifying drivers of CO2 emissions into a popular research area. Researchers have been attempting to determine the root causes of CO2 emissions for quite some time. While many economic factors have been associated with the emission levels, researchers' interest in undiscovered factors has brought political factors to the forefront. Although some institutional/political factors have been linked to CO2 emissions in the relevant literature, the specific impact of freedom of expression and belief (FEB) has yet to be examined. Notably, as democracies' provision of economic freedoms motivates production and consumption, exerting pressure on the environment, FEB can balance it. This study is a pioneering attempt to seek answers to this question. By assigning a specific role to FEB, the research seeks to determine the key factors influencing CO2 emissions in the Group of Seven (G7) between 2006 and 2022. Results suggest that FEB might be crucial in lowering CO2 emissions, whereas economic expansion and energy use tend to increase CO2 emissions. However, the impact of trade openness has yet to be found to be significant. Thus, securing and enhancing FEB could lead to significant environmental gains in G7 countries and globally.

The effect of foreign direct investment on economic growth in Afghanistan: an empirical insight

PurposeThis paper examines the impact of foreign direct investment (FDI) on the economic growth of Afghanistan over the period 1990 to 2019.Design/methodology/approachThis study uses an autoregressive distributed lag (ARDL) to measure FDI’s impact on economic growth and determine the short- vs long-run relationship.FindingsThe results show that the F-bound cointegration test confirms the long-run relationship among the variables. The long-run and short-run results reveal that foreign direct investment has a significant negative impact on economic growth in the long run. However, domestic investment and labour force have a significant and positive impact on economic growth in the long run. Moreover, the impact of trade openness on economic growth is insignificant in the long run, while it has a significant negative impact in the short run.Originality/valueIn this study, we contribute to this research area by analysing the function of FDI in economic growth from Afghanistan’s experience and perspectives. This is the first study empirically examining this relationship in Afghanistan while considering other selected macroeconomic indicators. This paper could greatly benefit policymakers in Afghanistan by guiding the formulation of FDI policies that would spur its economic growth and development.

Achieving sustainable development in ECOWAS countries: the impact of trade openness, poverty and human capital

This study investigates the relationship among trade openness, poverty, and human capital development in the pursuit of sustainable development across a panel of ten ECOWAS economies over a 34-year period (1987–2020). Specifically, it examines the roles of trade openness, poverty, and human capital development in sustainable development, while also exploring the moderating role of trade openness on the poverty-sustainable development relationship within the ECOWAS region. To conduct this analysis, the study employs panel autoregressive distributed lag (ARDL) using both the Pool Mean Group (PMG) estimator and Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) techniques, taking into account cross-sectional dependence, cointegration, and other relevant diagnostic tests. The findings indicate that poverty has a consistent negative long-run impact on sustainable development, while human capital is positively associated with sustainability over the long term. Trade openness lacks a significant relationship with sustainability in both the short and long run. Inflation is insignificantly related to sustainability. Exchange rates demonstrate mixed effects. In terms of moderation, trade openness positively and significantly moderates the poverty-sustainability relationship in the long run but not the short run. Robustness testing using the AMG and P-OLS models further validates the significant positive impact of human capital and the insignificant effect of trade openness on sustainable development. Given poverty’s significant negative association and human capital’s positive link with sustainable development, the findings suggest the need for integrated policy mixes prioritizing multidimensional poverty reduction and human capability enhancement to promote sustainability objectives across both short- and long-term horizons in ECOWAS countries. Furthermore, prudent management of exchange rates and well-designed trade policies should complement these efforts to mitigate potential risks and harness any benefits for sustainability.

Impact of Trade Openness on Government Expenditure in South Africa: an ARDL Approach

Impact of Trade Openness on Government Expenditure in South Africa: an ARDL Approach

The Impact of Trade Openness, Tariff, and Globalization on Food Security in the ASEAN Region

In 2023, many crises hit the world due to heated geopolitical conditions resulting from the war in Russia and Ukraine; the world situation was fragmented because of competition between the USA and PRC blocs, economic recovery due to COVID-19 was shaken again, and food inflation was soaring high. The leading cause of food insecurity in ASEAN, which consists of most developing countries, is the lack of distribution access due to the affordability of logistics and food supplies. Most investors shift their investment preferences from the primary sector to manufacturing due to the volatility and high risk of assets. In 2020, in Asia, there were 78.7 million toddlers who were stunted, with the second majority in Southeast Asia (27.40%). Although most of the ASEAN member countries are connected geographically, the market share of ASEAN member countries in world trade is only 8.8%, so intra-trade relations are considered not optimal enough. This study aims to analyze the effect of three different trade openness indicators (trade openness, tariffs, and globalization) on the food security of Southeast Asian people in 2000–2021. The method used in this research is panel data, which combines pool least squares (PLS) and fixed effect models (FEM) by developing Beck and Katz’s two panels corrected standard errors (PCSE): cross-section weights and SUR. Trade openness significantly affects the two pillars of food security: stability and utilization, with U-shaped results. Ad-valorem tariffs are significant and positive for the two pillars of food security: availability and utilization. Increasing taxes in Southeast Asia can improve the average dietary energy supply’s adequacy; however, this can also increase the prevalence of stunting in children under five. It happens because the availability of abundant food in terms of quantity differs from the quality and safety of its consumption. The increase in globalization from an economic, political, and social perspective in Southeast Asia is significant for the four pillars of food security; if globalization is increased, then this can positively impact reducing cases of stunting and malnutrition; on the other hand, increasing globalization has harmed food availability and stability. Increasing one policy has a different impact. In the first stage, policy improvements can positively impact a pillar of food security. However, after reaching a turning point, there is a possibility that the increased policy will harm the other pillars. Therefore, it is necessary to choose an integrative policy trade-off and be able to solve problems better. This study suggests several main policy implications, namely building a more assertive trade policy based on the WTO and food safety technical rules that comply with WHO rules, increasing intra-trade within the ASEAN group, maintaining food price stability, encouraging investment in agriculture, promoting governance reforms, and strengthening the regional food security system in terms of production, consumption, and distribution. Support policies are also needed regarding solid prevention efforts against stunting and malnutrition and digitalization (Agritech 4.0), which supports food availability. In addition, this research also suggests that ASEAN can continue to increase domestic food production for resilience to the global crisis. Keywords: trade openness, tariff, globalization, food security, ASEAN, dynamic panel

Study on the impact of trade openness on enterprise technological innovation: Based on the enterprise-level research in Jiangsu Province

Study on the impact of trade openness on enterprise technological innovation: Based on the enterprise-level research in Jiangsu Province

Trade Openness and Economic Growth in Nigeria: An Autoregressive Distributed Lagged (ARDL) Model Approach

The rationale behind undertaking this study stems from the observation that prior studies have failed to establish a consensus regarding the impact of trade openness on economic growth, largely due to research methodological deficiencies. Thus, this study investigated thе impact of tradе opеnnеss on Nigеria’s еconomic growth from 1980 to 2022. Thе Autorеgrеssivе Distributеd Laggеd (ARDL) Modеl was usеd to dеtеrminе thе long-run and short-run еffеcts of thеsе variablеs. Thе rеsults show that tradе opеnnеss positivеly impacts Nigеria’s long-tеrm еconomic growth, that is increased trade liberalization leads to increased long-run growth. The study recommends Nigeria’s government to promote trade libеralization, rеducе barriеrs, and еnhancе tradе tеrms by divеrsifying еxports and adding valuе.

Macroeconomic Determinants of Stock Market Development: A Systematic Literature Review

The objective of this study is to examine the various macroeconomic factors that influence the growth of the stock market, as well as to explore the techniques employed to establish a correlation between them. For this research, literature was sourced from databases such as Ebsco host, Web of Science, and JSTOR using the search terms "Macroeconomic determinants" and "Stock market". The data obtained was then analyzed using the PRISMA statement and presented in the report accordingly.The study revealed that economic growth has a positive effect on the growth of the stock market, while an increase in the inflation rate has a negative impact. The impact of trade openness, foreign investment, exchange rate, interest rate, and banking sector development was found to be mixed. The correlation between these macroeconomic determinants and stock market development was established by utilizing econometric techniques, including GARCH and ARCH models. This research aims to provide an understanding of the relationship between macroeconomic factors and the development of the stock market, as well as the impact of these factors. However, more in-depth exploration of this topic is needed, including the examination of additional databases and analysis on a country and sectoral level. This research will assist scholars and educators within the fields of economics and finance to gain insight into the macroeconomic factors that influence the growth of the stock market. As far as the researcher is aware, no systematic review using the PRISMA framework has been conducted on the relationship between "macroeconomic determinants" and "stock market development

A Study of the Effect of Trade Openness on Population Health: Empirical Evidence from China

Currently, the international economy is experiencing profound and intricate transformations, while economic globalization is encountering unprecedented challenges and witnessing a surge in counter-globalization sentiments. Critics express concerns over the potential detrimental effects of trade liberalization on the welfare of low-income groups, particularly in developing countries. China, as the largest developing country, also holds the status of a major trading nation. Using panel data from 285 prefecture-level cities across China during 2000–2019, this study examines how trade openness affects population health to assess the welfare effects of trade openness, providing new theoretical perspectives and empirical evidence to further promote economic globalization and improve human health and well-being. The results show that trade openness can significantly promote population health. And, a series of robustness tests show that the above conclusion is still valid. Trade openness has a greater positive impact on the health of the population of the eastern and central regions, the coastal cities, and high-trade-openness cities. An analysis of the mechanism reveal that trade openness mainly promotes population health through channels such as labor employment, wage income, public health investment, and personal health investment. However, trade openness can also lead to environmental pollution, which has a significant negative impact on population health. Additionally, through threshold effects analysis, it becomes evident that the relationship between trade openness and population health is nonlinear. This implies that there are critical thresholds related to the economic development stage, investment in environmental governance, and environmental infrastructure construction. Falling below or exceeding these thresholds may lead to different interval effects on the impact of trade openness on population health.

Free trade and carbon emissions revisited: The asymmetric impacts of trade diversification and trade openness

AbstractIn the context of trade protectionism impacting economic and environmental sustainability, a more comprehensive understanding of the impact of trade on carbon emissions is critical to economic and environmental sustainability. Existing literature mainly explores the impact of trade on carbon emissions from the perspective of trade openness, neglecting the perspectives of trade diversification and trade direction. This study aims to fill this gap by investigating the impact of trade openness (measured by trade volume, import, and export), and trade diversification (measured by import diversification and export diversification) on carbon emissions based on data from OECD and G20 countries between 1997 and 2019. The study further explores the heterogeneity, asymmetry, and mediation effects. The results demonstrate that (i) the impact of trade on carbon emissions is heterogeneous, with trade openness leads to an increase in carbon emissions, while trade diversification leads to a reduction in carbon emissions. Moreover, import diversification has the strongest effect on reducing carbon emissions. (ii) The impact of trade openness on carbon emissions is asymmetry. Trade openness increases carbon emissions at 10%–50% quantile levels and reduces carbon emissions at 80%–90% quantile levels. However, the impact of trade diversification on carbon emissions is consistent. (iii) The impact of trade openness on carbon emissions is mediated by technology effect and structural effect. On one hand, trade openness leads to an increase in carbon emissions by the industrial structure. On the other hand, it contributes to the reduction of carbon emissions by technological progress. These findings could serve to better understand the complexity of free trade's impact on economic and environmental sustainability.

Impact of Trade Openness on Tax Revenue in Nigeria

Impact of Trade Openness on Tax Revenue in Nigeria

Trade Openness and Wage Inequality: Case of Tunisia

The 90's have been marked by an increasing globalization which has revealed two major trends, if on the one hand there has been a more pronounced opening up, especially in the ranks of emerging countries, on the other hand there has been a considerable rise in inequalities. Despite an abundant literature on the link between trade openness and wage inequality, the latter remains relatively ambiguous, particularly in the absence of a consensus, especially for the developing countries. This article therefore focuses on the impact of trade openness on wage inequality, particularly between skilled and unskilled workers for the case of Tunisia. Our analysis took into account a number of factors that influence this relationship, such as labor market fluctuations, technological transfer and the effect of institutions. Our contribution to this work is that unlike the majority of work conducted on the Tunisian case, our analysis has not been limited to the manufacturing industry but we have extended it to the services sector and the whole economy by including the non-manufacturing sector in order to provide a comparative analysis between these different sectors The exploitation of the estimation results over the period 1990 to 2020 shows that, in general, openness has contributed to the increase in wage inequalities in Tunisia.

Evolution and driving factors of ocean carbon emission efficiency: A novel perspective on regional differences

Existing studies on carbon emission efficiency seldom discuss ocean carbon emission efficiency, and few studies on ocean carbon emission efficiency hardly discuss its regional differences. To fill this research gap, this paper innovatively measures and evaluates the ocean carbon emission efficiency of 11 Chinese coastal provinces from 2001 to 2019 using the super-efficiency SBM-GML model, and empirically analyzes the dynamic link between ocean carbon emission efficiency, trade openness and financial development by constructing a PVAR model based on an endogeneity perspective. Meanwhile, another major innovation of this study is to divide China's 11 coastal provinces into two coastal areas, north and south, with the Huaihe River as the boundary, in order to investigate the regional heterogeneity of ocean carbon emission efficiency and its influencing factors. The results show that (i) China's average ocean carbon emission efficiency has improved significantly, which is mainly due to the driving effect of technological progress. (ii) China's ocean carbon emission efficiency generally presents a spatial pattern that is higher in the south and lower in the north. Technological progress is the main source of the improvement in ocean carbon emission efficiency in the two regions. (iii) Significant regional heterogeneity exists in the impact of trade openness and financial development on ocean carbon emission efficiency, that is, trade openness and financial development both promote and hinder ocean carbon emission efficiency in the southern region than in the northern region. Finally, targeted policy recommendations are proposed.

The impact of trade openness, export concentration and economic complexity on energy demand among G7 countries

This research attempts to explore the scale (trade openness), composition (export concentration) and technique effect (economic complexity) of international trade on energy use in the sample of G7 nations over the period 1970 and 2020 separately. To do that, we build up three empirical models based on the regression on population, affluence and technology approach. The analysis outcomes indicated a positive long-run link between per capita income, urbanization, trade openness, export concentration, economic complexity and energy use across the three models. The outcomes obtained from long-run estimations provide evidence that economic complexity and export concentration decreases energy consumption. Besides, empirical findings show that trade openness boosts energy use. Based on the detailed empirical research, the direction for the policy is that they should harness more strength on energy conservation by increasing the composition and technical effects of international trade. They should also focus on improving the countries’ economic freedom (trade openness) while maintaining energy consumption at a lower rate.

Openness and Real Exchange Rate Volatility: Evidence from China

In recent years, China has introduced a series of trade and financial liberalization policies and taken a crucial step towards the internationalization of RMB. These new developments bring about one question: how has openness affected the RMB real exchange rate volatility? Our empirical results reveal that in the long term, both trade and financial openness reduce exchange rate volatility; in the short term, the effect of financial openness varies across the three financial sub-accounts. Financial development can magnify (mitigate) the impact of trade openness on volatility in the short (long) term, but its role in affecting the impact of financial openness depends on the financial sub-account involved. Economic policy uncertainty (EPU) weakens the impact of openness on exchange rate volatility. In addition, financial openness absorbs more external shocks than trade openness. Foreign exchange reserves, while offsetting financial crisis shocks, cannot adequately absorb current account balance shocks.

How does renewable energy consumption and trade openness affect economic growth and carbon emissions? International evidence of 122 countries

This paper aims to systematically explore the impact of renewable energy consumption, trade openness, industrialization, and urbanization on economic growth and carbon emissions while considering the different development levels of 122 countries over the period 1998–2018. Pesaran CD test, CIPS unit root test, Pedroni cointegration test, fully modified ordinary least square (FMOLS) estimation, Dumitreschu–Hurlin causality test and DOLS robustness test are adopted. The results show that trade openness has different effects on economic growth and carbon emissions across different income groups. Specifically, the impact of trade openness on economic growth in high- and low-income countries is positive, while trade openness has a negative impact on economic growth in middle-income countries. Meanwhile, the impact of trade openness on carbon emissions supports the pollution haven hypothesis. Urbanization promotes economic growth in all income countries, and increases carbon emissions in countries of all income groups except high-income countries. Renewable energy consumption promotes economic growth and curbs carbon emissions, while industrialization increases economic growth and carbon emissions. Further findings show a one-way causality from trade openness to renewable energy consumption. Finally, some targeted recommendations are provided for countries with different development stages.

The Impact of Trade Openness on Economic Growth in Somalia

The Impact of Trade Openness on Economic Growth in Somalia

Romer's Hypothesis Validation and Threshold of Trade Openness in ASEAN

The purpose of this study is to test and analyze Romer's hypothesis regarding the impact of trade openness on inflation. In addition, this study also aims to measure the threshold point of trade openness. The method used is the System GMM and the Threshold Panel for the period 2010-2021. The estimation results show that trade openness has a significant effect on inflation. The sign of the coefficient of trade openness is positive, meaning that an increase in trade openness will lead to higher inflation. These results mean that Romer's hypothesis is invalid in ASEAN. The government is expected to be able to reduce the degree of trade openness by re-establishing agreements with bilateral and multilateral countries. If the trade agreement is profitable then it is continued, if it is not profitable it is better not to continue. Keywords: Trade Openness, Inflation, System GMM, ASEAN

Do Countries Need Religious and Educational Freedoms to Achieve Prosperity?

This study examines the impact of religious and educational freedoms on prosperity. The system GMM model is applied by using the data of 45 lower-, middle-, and high-income countries from 2009 to 2018. The results show that religious and academic freedoms are positively and statistically significantly associated with prosperity. It is revealed from the results that the lagged impact of both religious and education freedoms has a higher impact on prosperity than the current level of both variables. Interestingly, the interaction term between academic and religious freedom is also positive and statistically significant, indicating that their combined effect further increases prosperity. Further, the interaction term between government effectiveness and gross fixed capital formation is introduced. Its impact is positive and significant, indicating that capital investment positively affects prosperity in the case of higher government effectiveness. This study uses gross fixed capital formation and trade openness as control variables and these variables have a positive impact on prosperity, but the impact of trade openness on prosperity is insignificant. Thus, this study recommends religious and education freedom to achieve prosperity, especially in low-income countries that are already lagging.