Globalization of production, manufacturing employment, and income inequality in developing nations

Theories of income distribution in developing nations suggest contrasting expectations regarding how employment industrialization affects income inequality. However, past studies have not considered how the globalization of production shapes the relationship between manufacturing share of employment and income inequality in developing countries. Relatedly, social scientists argue that the globalization of production has exacerbated inequality, but past cross-national research focused on the Global South has yielded inconsistent findings regarding the trade-inequality link. In this article, I draw on the political economy literature focused on the distributional effects of global value chains (GVCs) in the developing world and argue that the rise of globalized production in recent decades has undermined the egalitarian characteristics of the manufacturing sector. While the sector was characterized by higher wages for low-skilled workers and a compressed wage distribution, I argue that rising competition, declining bargaining power of workers, and skill-biased industrial upgrading associated with GVCs has stretched wage distributions and heightened the skill premium in the manufacturing sector. Empirical analyses of cross-national panel data from broad samples of developing nations between 1970 and 2014 suggest that global integration has diminished the equalizing effect of manufacturing employment. I conclude by discussing the prospects for inclusive development in this era of globalization as well as the theoretical and policy implications of these findings.

Decomposed and partial connectedness between economic globalization, non-renewable and renewable energy consumption in Vietnam

In this study, we use a time-varying parameter vector autoregression (TVP-VAR) in conjunction with the extended joint connectedness approach to examine the influences of the economic globalization measured by foreign direct investment (FDI) as well as trade openness (TO), on renewable and non-renewable energy consumption, by characterizing the connectedness of these variables, from 1987 to 2020 in Vietnam. Our results demonstrate that abolishing the state monopoly in foreign trade influences the system-wide dynamic connectedness of trade openness, which peaked in 1989. Net total directional connectedness of FDI and energy consumption suggests that both the consumption of renewable and non-renewable energy consistently act as net contagion shock receivers, and FDI is a critical net transmitter the whole time. Trade openness behaves consistently as a critical net shock transmitter in 1989 but turned into an essential net receiver from 1990 to 2020. In a system with trade openness, the consumption of non-renewable energy consistently acts as a net contagion shock receiver, and renewable energy consumption is a critical net transmitter in the whole sample. Pairwise connectedness reveals that FDI consistently appears as a shock transmitter to renewable and non-renewable energy consumption. Trade openness could be either a transmitter or a receiver of shock from non-renewable energy, depending on the period, and is a net receiver of shocks from renewable energy consumption during our sample. The findings of this paper are critical for Vietnam's government to make a greater contribution to the expansion of global commerce and a sustainable environment.

Formulating ecological sustainability policies for India within the coal energy, biomass energy, and economic globalization framework

The betterment of environmental conditions is widely recognized as a significant priority for India, which is a critical aspect of the Sustainable Development Goals (SDGs). As an emerging economy, pursuing economic expansion is paramount, requiring significant amount of energy and a degree of openness to other nations. Meanwhile, the nation's energy demands are heavily met by the usage of biomass and coal energy sources. Furthermore, the nation is part of the top consumer of biomass and coal energy globally. However, over the last 50 years, the level of ecological footprint in India has surged by about 82%, despite the country's commitment to achieving environmental sustainability, which tends to raise concerns such as: What is the role of India's major energy sources, biomass, and coal energy, towards ecological sustainability? Does economic globalization promote and hinder India's environmental sustainability goals? As a result, this current study offers answers to these concerns by investigating the effect of economic globalization, coal energy, and biomass energy on the ecological footprint in India while controlling economic growth. Using the dynamic ARDL to analyze the dataset from 1970 to 2018, the result suggests that biomass energy and economic globalization improve ecological quality. However, economic growth and coal energy impede ecological quality in India. Furthermore, we adopted the time-varying causality test solely to understand the causality analysis, which established that economic globalization, biomass energy, economic growth, and coal energy could forecast the future direction of the ecological footprint.

The impacts of renewable energy production, economic growth, and economic globalization on CO2 emissions: evidence from Fourier ADL co-integration and Fourier-Granger causality test for Turkey

Along with the growth and globalization of the whole world economy since the First Industrial Revolution, the production and use of fossil fuels have led to increased CO2 emissions and, ultimately, significant environmental degradation. The impact of globalization, economic growth, and renewable energy sources on CO2 may show trends with different turning points in developing countries, and estimations may need to follow Fourier-type functions to capture the frequency domain. Therefore, the aim of this study is to examine the effects of renewable energy production, economic globalization, and economic growth on CO2 emissions for Turkey in the period 1971-2006 with Fourier autoregressive distribution lag (ADL) cointegration, DOLS, and Fourier-Granger causality tests. The originality of this study is the estimation of a model of CO2 emissions with a Fourier-type function for the first time. The findings indicate a negative relationship between renewable energy production and CO2 emissions and a positive relationship between economic globalization and economic growth and CO2 emissions. In addition, according to the empirical results, there exists a one-way causality relationship between economic globalization to CO2 and economic globalization to renewable energy production, and there is evidence of a bidirectional causality relationship between economic globalization and economic growth in this study.

Green technologies, government stability, and green energy transition in a globalized world: evidence from E-7 nations

Unsustainable development and rising environmental degradation are major challenges for emerging nations that tend to promote human welfare by expanding economic development. Green energy transition (GETR) can help these nations to continue their development, reduce fossil fuel utilization, and achieve environmental sustainability. However, previous literature overlooks the importance of green technologies, government stability, and economic globalization in the GETR process. Accordingly, this research takes a step forward and assesses the impacts of green technologies (GT), government stability (GOV), and economic globalization (EGL) on green energy transition including population density (POP) and economic growth (GDP) in emerging seven (E-7) countries from 1992 to 2020. The research applied the "continuously updated fully modified (CuP-FM)" methodology to acquire the long-run findings robust to endogeneity stationary regressors, autocorrelation, and cross-sectional dependence (CD). The results highlighted that green technologies can be enhanced to accelerate the energy transition process since GETR and green technologies are positively connected. Also, government stability and economic globalization support the green energy transition. However, both population density and economic growth obstruct the energy transition process. The Emirmahmutoğlu and Kose test unveiled that green technologies, economic globalization, and government stability Granger cause the green energy transition. Based on these findings, policies are directed to promote the GETR by enhancing green technologies, economic globalization, and government stability for achieving ecological sustainability.

Links among population aging, economic globalization, per capita CO2 emission, and economic growth, evidence from East Asian countries

Population aging, economic globalization, and economic growth simultaneously cause changes in environmental quality, but so far no studies have integrated these key factors into the same environmental policy framework. Thus, this study uses the more robust Westerlund cointegration test and the augmented mean group (AMG) estimator (robust to cross-sectional dependence (CD), heterogeneity, and endogeneity) to estimate the long-term relationship between population aging, economic globalization, economic growth, and per capita carbon emissions in East Asian countries during the period 1975-2018. The analysis results reflect that population aging significantly reduces the long-term per capita carbon emissions of specific East Asian countries. However, energy generation and economic globalization make significant contributions to long-run per capita carbon emissions. Moreover, the impact of economic growth on long-term per capita carbon emissions is significantly positive, while the impact of square of economic growth on long-run per capita carbon emissions is significantly negative, thus validating the inverted U-shaped environmental Kuznets curve (EKC) hypothesis for specific East Asian countries. The results of the causality test indicated a two-way causality between energy generation and per capita carbon dioxide emission, supporting the feedback hypothesis. There is also a two-way causal relationship between aging population and per capita carbon dioxide emission. Policy recommendations are discussed in response to the empirical findings of this study.

The role of eco-innovation, renewable energy consumption, economic risks, globalization, and economic growth in achieving sustainable environment in emerging market economies

In the last two decades, environmental degradation has been a topic of concern. The rising level of CO2 emissions (CO2E) has adversely affected life in the E7 countries, which comprise of Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. The increased in CO2E is the cause of rising sea levels in the E7 countries. Visibly, E7 nations which are considered as the largest emitters of CO2 are facing the most severe environmental challenges. This study investigates the impact of eco-innovation, economic growth (EG), renewable energy consumption (REC), economic risk (ERI), and globalization on the CO2E, using the Feasible Generalized Lease Squares (FGLS) and Panel Corrected Standard Errors (PCSE) techniques for the period 1995 to 2018. The results indicate an inverted N-shaped relationship between eco-innovation and CO2E. Also, eco-innovation, REC, and economic risk are observed to be significant factors in abating CO2 emissions. On the contrary, globalization and GDP are responsible for rising CO2E in E7 countries. According to empirical estimates, eco-innovation improves the efficiency of carbon emissions, which lowers CO2E. In addition, because they are immune to changes in the price of oil and gas and disruptions brought about by geopolitical events, renewable energy sources can offer countries a more secure energy source than fossil fuels. Alternative energy sources can reasonably cut CO2E while offering a more reliable and secure energy source. Therefore, it is crucial that policies be put in place to cut CO2E by giving priority to environmental innovative policies.

Do National Export Promotion Programs in Indonesia support export competitiveness?

This study examines the influence of export promotion programs (EPPs) in Indonesia on companies' resources, capabilities, strategies, and competitiveness, and whether such programs positively impact export performance and finances. Using data from 204 exporting companies in Indonesia and the structural equation model for analysis, this study finds that participation in EPPs reinforces the organizational resources and exporting capabilities needed for developing successful export strategies. This allows for the creation of competitive advantages in export costs, product superiority, and effective distribution, which in turn increases performance in terms of market share and finance. The results also indicate that the effect of EPPs is relatively more significant on small companies and those with more export experience. They confirm that EPPs have the most significant impact on firms' resources and capabilities, and that assistance programs that aim to improve organizational capabilities are needed to enhance marketing strategies. While innovative capabilities and business intelligence offer great potential to support export performance, EPP-type assistance programs have not been adequately developed in Indonesia.

Natural Resources Depletion, Financial Risk, and Human Well-Being: What is the Role of Green Innovation and Economic Globalization?

Human well-being is the top priority of all nations in the twenty-first century. However, depletion of natural resources and financial risk can negatively impact human well-being, which in turn can make it difficult to realize human well-being. Also, green innovation and economic globalization may play a significant role in human well-being. In this context, this study assesses the impacts of natural resources, financial risk, green innovation, and economic globalization on human well-being in emerging countries from 1990 to 2018. The empirical results from the Common Correlated Effects Mean Group estimator unveiled that natural resources and financial risk negatively affect the human well-being of emerging nations. Furthermore, the results show that green innovation and economic globalization positively contribute to human well-being. These findings are also verified using alternative methods. In addition, natural resources, financial risk, and economic globalization Granger cause human well-being but not the other way round. Furthermore, bidirectional causality exists between green innovation and human well-being. Considering these novel findings, sustainable utilization of natural resources and controlling financial risk are necessary strategies for realizing human well-being. More resources should be allocated for green innovation, and government should encourage economic globalization to attain sustainable development in emerging countries.

Graphical Abstract

Impact of coal rents, transportation, electricity consumption, and economic globalization on ecological footprint in the USA

Over the last three decades, the world has been facing the phenomenon of the ecological deficit as the ecological footprint is continuously rising due to the persistent decline of the per-capita bio-capacity. Moreover, there is a substantial increase in globalization and electricity consumption for the same period, and transportation is contributing to economic prosperity at the cost of environmental sustainability. Understanding the determinants of ecological footprint is thus critical for suggesting appropriate policies for environmental sustainability. As a result, this study analyzes the impacts of economic globalization, transportation, coal rents, and electricity consumption in ecological footprint in the context of the USA over the period 1995 to 2018. The data have been extracted from "Global Footprint Network," "Swiss Economic Institute," and "World Development Indicators." The current study has also applied the flexible Fourier form nonlinear unit root test to examine the stationarity among variables. For the empirical estimation, a novel technique, the "quantile auto-regressive distributive lag model," is applied in the study to deal with the nonlinear associations of the variables and to evaluate the long-term stability of variables across quantiles. The study's findings indicate that coal rents, transportation, and globalization significantly and positively contribute to the deterioration of ecological footprints at different quantile ranges in the short and long run. Electricity consumption is found to have a positive and significant impact at lower quantile ranges in the long run but not have a significant impact in the short run. The study suggested that lowering the dependence of the transport sector on fossil fuels, more use of hydroelectricity, and stringent strategies to curb coal consumption would be helpful to reduce the positive influence of these variables on ecological footprints in the USA.

Testing the long-run impact of economic growth, energy consumption, and globalization on ecological footprint: new evidence from Fourier bootstrap ARDL and Fourier bootstrap Toda-Yamamoto test results

The aim of this study is to investigate the impacts of economic growth, energy consumption, and the economic globalization process on ecological footprints in the top 10 countries that cause the highest carbon dioxide emissions in the world. The analyses were conducted on annual observations from 1970 to 2017 (a different range for each country) employing the Fourier bootstrap ARDL cointegration method developed by Yilanci et al. (2020) and the Fourier bootstrap Toda-Yamamoto causality method developed by Nazlioglu et al. (2016). In the cointegration approach, an additional F-test provides better insights to define degenerate cases and the bootstrap test performance is powerful than the asymptotic test. In this context, Fourier bootstrap ARDL test results revealed that there is a long-term relationship between ecological footprint and economic growth, energy consumption, and economic globalization in seven countries-namely, Canada, China, Germany, India, Indonesia, Iran, and Saudi Arabia. According to long-run coefficients, in general, economic growth and energy consumption have negative effects on ecological footprint, whereas economic globalization has a positive effect on the ecological footprint for these countries. To evaluate it more specifically, (i) real gross domestic product per capita has positive and statistically significant coefficients on the ecological footprint in China, India, Indonesia, Iran, and Saudi Arabia, except for Germany. (ii) Energy consumption per capita also has positive and statistically significant coefficients on the ecological footprint in China, Germany, Iran, and Saudi Arabia, except for Indonesia. (iii) Finally, the economic globalization process has negative and statistically significant coefficients on the ecological footprint in Canada, China, India, and Saudi Arabia, except for Indonesia. On the other hand, Fourier bootstrap Toda-Yamamoto causality test results show a mixed character. Governments should take action to reduce the negative effects of the climate crisis as immediate as possible, which has been widely expressed recently. Among these, increasing the use of renewable energy sources and new carbon-free technologies in the production process appears as important policy tools.

Land-System Changes and Migration Amidst the Opium Poppy Collapse in the Southern Highlands of Oaxaca, Mexico (2016-2020)

For decades, Mexico has been one of the major illegal opium poppy cultivation countries in the world. In 2017-2018 the price of the opium gum dropped abruptly to a historical low, causing a sudden collapse of production. We analyze the dynamics of rural land systems amid this price collapse through a multi-site approach in three neighboring municipalities in the Southern Highlands of the state of Oaxaca, Mexico. We use medium-scale spatial resolution satellite imagery for a quantitative assessment in a five-year period (2016-2020), complemented by secondary data and structured/semi-structured interviews with poppy growers and other key informants. Findings show that all three municipalities experienced pronounced declines in the areas of overall cultivated agricultural land immediately after the poppy price collapsed (2017-2018). However, there is a clear contrast among municipalities in how these areas recovered the following years (2019-2020). We identify three differentiating factors that explain this contrast in land-system trajectories: different levels of extreme poverty, livelihood diversification, and geographic isolation associated to (trans)national migration networks. These findings contribute to the analysis of the dynamic relationships among rural land systems, local resource management (including agrobiodiversity), and economic globalization involving illegal crop-commodity cultivation and migration, particularly in Latin America.

SUPPLEMENTARY INFORMATION

The online version contains supplementary material available at 10.1007/s10745-022-00388-4.

The ecological impact assessment of globalization dimensions and human capital: a dynamic approach in the case of selected fossil fuel-rich countries

The aggravation of climatic damage, the rise in pollution, and global warming have prompted investigation of factors leading to the increase in human demand on natural resources. Numerous studies have dealt with the connections linking human action with the environmental impact, but this research field remains insufficiently documented. Human resources constitute the center of decision to reduce the ecological footprint, but studies on the impact of human capital and the social and human dimension of globalization on environmental sustainability have been insufficiently analyzed. Therefore, the aim of this study is to verify the capacity of human capital and the social dimension of globalization in addition to its political and economic ones to mitigate environmental degradation. The study referred to the FMOLS, DOLS, and PMG-ARDL methods applied to 13 fossil fuel-rich countries spanning the period 1992-2017 and applied a set of robustness tests based on the cross-section dependence test, unit root tests, and Johansen combined test. The findings, based on FMOLS and DOLS techniques, demonstrate that human capital exerts positive long-term influence upon ecological footprint in the case of fossil fuel-rich countries. Globalization does not significantly impact ecological footprint: only political globalization is able to decrease deterioration in the environment, and neither economic nor social globalizations have an effect. When applying the PMG-ARDL approach, the results supported those derived from FMOLS and DOLS methods and revealed that human capital positively affects ecological footprint in the long term but without significant short-term effects. Our results also showed that globalization is beneficial for high-income countries and harmful for middle-income countries in terms of mitigating environmental degradation. So, the reduction of the ecological footprint in the fossil fuel-rich economies remains dependent on the actions taken by political decision-makers at the international level and on the awareness of human capital of the urgency of mitigating environmental degradation. A set of recommendations in favor of environmental sustainability, in particular those relating to human action and which can serve decision-makers, were formulated in this study.

Does the potency of economic globalization and political instability reshape renewable energy usage in the face of environmental degradation?

Since renewable energy is essentially non-carbohydrate in nature, it can generate little or no pollutants and can therefore help in achieving both sustainable development and environmental quality. In this regard, the question that continues to persist is whether economic growth, economic globalization, and political risk can potentially affect renewable energy in the presence of environmental deterioration. In this context, the current research provides evidence to support this theoretical context by investigating the impact of economic globalization, economic growth environmental degradation, and political risk, on the usage of renewable energy in Vietnam using a dataset spanning the period between 1984 and 2019. For empirical analysis, the dynamic autoregressive distributed lag approach is utilized. Based on our analysis, economic growth positively impacts renewable energy in the long and short term. Economic globalization also positively affects renewable energy in the long term, but a neutral impact is uncovered in the short term. Political risk and environmental degradation are adversely related to renewable energy in the short and long run. The findings from the frequency domain approach reveal a causal interaction from political risk to renewable energy, and from renewable energy to economic globalization, whereas a feedback causal interaction is discovered between renewable energy and environment degradation, as well as between economic growth and renewable energy. From a policy standpoint, we propose that the Vietnamese policymakers need to consider economic globalization as a renewable energy promotion tool via capital inflow, foreign direct investment, and technological transfer.

A static and dynamic copula-based ARIMA-fGARCH approach to determinants of carbon dioxide emissions in Argentina

This paper attempts to model both static and dynamic dependence structures and measure impacts of energy consumptions (both renewable (EC) and non-renewable (REN) energies), economic globalization (GLO), and economic growth (GDP) on carbon dioxide (CO₂) emissions in Argentina over the period 1970-2020. For analyses purpose, the current research deploys the novel static and dynamic copula-based ARIMA-fGARCH with different submodels. The static bivariate copula results show that the growth rates of the pairs EC-CO₂ and GDP-CO₂ are asymmetrically positive co-movements and have high left tail (extreme) dependencies, implying that the increase in non-renewable energy and economic growth can critically contribute to the environmental degradation, and the decrease in the consumption of non-renewable energy at a high level will consequently reduce the CO₂ emissions at the same level. Based on several copula-based dependence measures, we document that between the two factors, the non-renewable energy has a stronger impact than the economic growth regarding the CO₂ emissions. On the other hand, the growth rates of both economic globalization and renewable energy symmetrically negatively co-move with the growth rates of the CO₂ emissions, but they have no extreme dependencies, indicating that these factors contribute to Argentina's environmental quality, in which the factor of renewable energy has a greater impact. Furthermore, the dynamic copula outcomes show that the (tail) dependencies of CO₂ emissions on the non-renewable energy and economic growth are time-varying, while the pairs REN-CO₂ and GLO-CO₂ possess only dynamic dependencies, but no dynamic tail dependencies. Moreover, through the dynamic copula-based dependence, the environmental Kuznets curve (EKC) hypothesis can be estimated and illustrated explicitly. In addition, we leverage multivariate vine copulas for modelling dependence structures of the five variables simultaneously, which can reveal rich information regarding conditional associations among the relevant variables. Some policy implications are also provided to mitigate CO₂ emissions.

Mitigating energy production-based carbon dioxide emissions in Argentina: the roles of renewable energy and economic globalization

The energy sector of Argentina is predominantly reliant on fossil fuels. Consequently, such fossil fuel dependency within the nation's power sector, in particular, has aggravated the environmental quality in Argentina by amplifying the nation's energy production-based carbon emission levels. However, keeping into consideration the international commitments pledged by Argentina under the Paris Accord and the Sustainable Development Goals agenda, it is pertinent for this South American country to curb its energy production-based emission of greenhouse gases, especially carbon dioxide. Against this milieu, this study examines the impacts of renewable electricity generation, economic globalization, economic growth, and urbanization on carbon dioxide emissions generated from the production of electricity and heat in the context of Argentina. Using annual frequency data from 1971 to 2016, recent econometric methods are applied to control for multiple structural breaks in the data. The major findings from the ecnometric analyses affirmed long-run associations between renewable electricity generation, economic globalization, economic growth, urbanization, and energy production-based carbon dioxide emissions in Argentina. Besides, enhancing renewable electricity output shares is found to curb these emissions while economic globalization and urbanization are witnessed to boost them. Moreover, renewable electricity generation and economic globalization are found to jointly reduce the energy production-related carbon dioxide emissions in Argentina. The results also validate the authenticity of the Environmental Kuznets Curve (EKC) hypothesis. Finally, the causality analysis reveals evidence of unidirectional causalities running from renewable electricity generation, economic globalization, economic growth, and urbanization to energy production-related carbon dioxide emissions in Argentina. In line with these findings, this study recommends several viable policies which can be implemented to help Argentina control the growth of its energy production-based carbon dioxide emissions.

Combined role of green productivity growth, economic globalization, and eco-innovation in achieving ecological sustainability for OECD economies

Since climate change is the paramount concern of recent literature, macroeconomic factors such as green growth and economic globalization may play an integral role in achieving ecological sustainability in the presence of eco-innovation. However, the combined contributions of green growth, economic globalization, and eco-innovation towards achieving ecological sustainability are missing from the existing knowledge. Therefore, we investigate the combined influence of these variables in the presence of human capital, financial development, and gross domestic product on ecological footprint per capita for a panel of 20 Organization for Economic Co-operation and Development (OECD) countries from 1990 through 2017. The method of panel quantile regression is used to produce sound results across varying levels of the ecological footprint of OECD nations. The main results are as follows: firstly, green productivity growth linearly and non-linearly mitigates the ecological degradation, presenting a more pronounced ecological protection impact for higher quantiles, followed by medium and lower quantiles. Secondly, economic globalization manifests mixed effects: it induces ecological deterioration impact in the absence of its interaction with eco-innovation, while it brings about an ecological protection impact with the interaction term. Thirdly, eco-innovation demonstrates an ecological protection impact for all quantiles, with the most influential impact in countries with higher ecological footprint per capita, followed by medium and lower footprints. Based on empirical results, we propose productive utilization of environmental resources for ecological sustainability through product and process innovation and efficient management practices. Besides, we recommend cultivating energy-efficient and clean environmental technologies for long-term ecological sustainability.

The effects of economic globalization and productivity on environmental quality: evidence from newly industrialized countries

Newly industrialized countries (NICs) have become important contributors of the global environmental deterioration in line with the increases in their share in global output. Exerted efforts towards increasing welfare through global integration and increased productivity have sometimes come at the cost of worsened environmental quality in most of the countries. This study employs augmented mean group (AMG) estimator and investigates the effects of economic globalization, human capital, gross capital formation, and total factor productivity on ecological footprint (EFP) in 11 NICs from 1975 to 2017. The study also contains bootstrap causality tests to obtain causal inference. Empirical results reveal that economic globalization and human capital are negatively correlated with EFP, while GDP per capita manifests a positive and highly significant relationship with EFP. Unit percentage increases in economic globalization index and human capital are found to create .17% and .39% reduction in ecological footprint, respectively. On the contrary, a percentage increase in total factor productivity creates .13% increase in EFP. Estimation results support the pollution halo hypothesis for 11 NICs and confirm the positive effect of human capital on the environment and expose the adverse effects of inadequate regulation. In terms of causality analysis, results reveal unidirectional causality relationships (i) from economic globalization to EFP, (ii) from GDP per capita to EFP, (iii) from trade openness to EFP and from EFP to total factor productivity. Human capital and EFP are found to be in bidirectional causal relationship. The study underlines the importance of global integration and human capital as they are negatively correlated with and causally linked to EFP. Policies that undermine the global economic integration and neglect effective regulations are expected to further aggravate environmental problems in NICs.

Study on the long-term impact of economic globalization and population aging on CO2 emissions in OECD countries

Both economic globalization and population aging have given rise to changes in environmental quality, but the research that integrates these two crucial factors into the same environment policy framework is still a blank. Therefore, using panel data of the Organization for Economic Cooperation and Development (OECD) over the period 1971-2016, this study examines the long-term impact of economic globalization and population aging on CO₂ emissions. First, second-generation panel regression approaches are employed to verify the panel data, including unit root tests, cointegration tests and causality tests. Next, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) are respectively used for empirical analysis of the long-term impact between variables. The augmented mean group (AMG) is also applied to ascertain the robustness results of the estimation coefficients. Finally, using Dumitrescu and Hurlin non-causality test to examine the causal associations between variables to avoid the contingency of the results. The overall results show that economic globalization and population aging decrease the long-term CO₂ emissions. The inverted U-shaped relationship between economic growth and environmental pollution confirms the effectiveness of the Environmental Kuznets Curve (EKC) in OECD countries. In addition, unidirectional causal relationships have been found from economic globalization and population aging to CO₂ emissions in this study. Policy suggestions in response to these findings are discussed.

Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with a Fourier function

Recently, there has been renewed interest in the relationship between economic globalization and environmental pollution since various globalization indices are developed. Although several attempts have been made to investigate the impact of globalization on the environment, no known empirical research has focused on exploring the causal relationship between ecological footprint and economic globalization index (provided by KOF Swiss Economic Institute) considering also its subcomponents-trade and financial globalization indices. In this study, a new panel data technique for the causality analysis is developed (namely, panel Fourier Toda-Yamamoto approach) and applied to ecological footprint-economic globalization nexus in 14 MENA (Middle East and North Africa) countries during the period 1981-2016. The empirical results highlight that ecological footprint Granger causes economic, trade, and financial globalization for the panel. Besides, it is found that financial globalization has a predictive power to predict further values of environmental degradation in the MENA countries. The empirical results of this paper have a number of practical implications for policymakers. Especially, policymakers should be careful about implementing environmental policies since they may affect economic (trade and financial) activities negatively.

Carbon emissions embodied in the global supply chain: Intermediate and final trade imbalances

By differentiating intermediate trade from final trade, this paper combines typical statistics for the world economy in 2012 to explore the transfer of embodied carbon emissions via the global supply chain and the related trade imbalance. The emission transfer embodied in interregional trade is in magnitude around 40% of global direct carbon emissions. The global intermediate trade volume of embodied carbon emissions is estimated to be 2.3 times as much as the final trade volume. While Mainland China obtains a considerable economic trade surplus, its carbon trade deficit is about twice the carbon trade surplus of the United States. Mainland China's final trade deficit is around 1.2 times as much as its intermediate trade deficit of embodied carbon emissions. EU27, the United States, ASEAN and Japan serve as the major contributors to China's intermediate and final trade deficits. For the United States, its intermediate carbon trade surplus is almost equal to its final trade surplus. The United States gains a carbon surplus with most of its trading partners in both intermediate and final trades. A future scenario analysis in terms of carbon emission projection is conducted. While the direct and embodied carbon emissions of the United States and Japan are estimated to change slightly from 2012 to 2040, India's carbon emissions are projected to experience a twofold increase during the period. In the long term, though with ups and downs, the economic globalization will be inevitably moving forward, leading to a highly sliced-up global supply chain and increasingly delicate regional specialization as well as frequent intermediate trade between regions. It is suggested that nations and regions should follow this trend and adapt themselves to the global value chain by carefully assessing their roles in intermediate and final trades in terms of both currency and embodied carbon emissions.

The nexus between economic globalization and human development in Asian countries: an empirical investigation

In recent years, countries both developed and developing ones have experienced a rapid economic globalization expanding economic activities. Although this economic globalization process is fruitful for the economy; however, what role it plays in the promotion of the human development index is still unknown. To this end, the study tries to explore the linkage among economic globalization, real income, and human development index in Asian countries from 1990 to 2015. The advanced econometric techniques that allow dependencies across countries are employed. The panel cointegration approach, Westerlund (2007) panel cointegration test, confirms the cointegration relationship among study variables, and the study estimates long-run cointegration parameters. Results reveal that economic globalization has not a significant impact on human development. However, real income promotes human development in Asian countries.

The dirty energy dilemma via financial development and economic globalization in Pakistan: new evidence from asymmetric dynamic effects

Energy strategy has been an essential strand in the view of economists in achieving rapid development process of any country. The recent wave of globalization exerts pressure on energy consumption via financial development which ultimately vindicates economic growth. This paper has covered a period of 1976-2016 using annual data for the empirical analysis and constructed a growth equation as the main equation and the energy consumption equation as a channel equation. The empirical study has been undertaken by performing ARDL and nonlinear autoregressive distributed lag models (NARDL). The bound test result declares a long-run association in both equations. Consequently, energy consumption and economic globalization have significantly enhanced economic growth in the long run. Whereas, financial development index has no influence on the economic growth of Pakistan. The results of channel equation suggested that due to growing the price of crude oil, the energy consumption is reduced in the long run. The increasing imports of energy products and increasing urbanization are conducive for energy consumption in Pakistan. By NARDL model, our empirical findings provide robust support for the existence of asymmetric co-integration linking among underlying variables of the study.