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Trade Liberalization and Environmental Performance Index: Mediation Role of Climate Change Performance and Greenfield Investment

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  • Ali Raza

    (School of Economics, Shandong University, Jinan 250100, China
    Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok 06010, Malaysia)

  • Hongguang Sui

    (School of Economics, Shandong University, Jinan 250100, China)

  • Kittisak Jermsittiparsert

    (College of Innovative Business and Accountancy, Dhurakij Pundit University, Bangkok 10210, Thailand)

  • Wioletta Żukiewicz-Sobczak

    (Department of Food and Nutrition, Calisia University, 62-800 Kalisz, Poland)

  • Pawel Sobczak

    (Department of Food Engineering and Machines, University of Life Sciences in Lublin, 20-612 Lublin, Poland)

Abstract

At present, concerns regarding climate change are common, especially in countries more vulnerable to environmental degradation. Greenhouse gases, including carbon emissions, are mainly considered to deteriorate the environment. Despite substantial agreement on many environmental issues, there are also important differences between regions and countries, and often, within nations. Accordingly, this study aims to examine the environmental performance of South and East Asian countries and its association with trade and other economic variables. Panel regression techniques and robust checks are used to examine the data, which covers 15 years from 2002 to 2016. The findings suggest an extensive negative association between trade liberalization and the environmental performance of selected countries. It is also shown that climate change performance is an important channel for the overall environmental change. The results regarding heterogeneous differences affirm the concept of sustainability and the pollution halo hypothesis. However, it is suggested that each country should make an effort to improve its environmental performance along with economic development. The role of green innovation and renewable energy is very crucial in this regard. The outcomes of this study could be helpful for researchers and policymakers to form better policies regarding the environment and climate change.

Suggested Citation

  • Ali Raza & Hongguang Sui & Kittisak Jermsittiparsert & Wioletta Żukiewicz-Sobczak & Pawel Sobczak, 2021. "Trade Liberalization and Environmental Performance Index: Mediation Role of Climate Change Performance and Greenfield Investment," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9734-:d:625382
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