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The Long-Run Relationship Between Commerce And Sustainable Development In Baltic And Central And Eastern European Countries

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  • Basarab Gogoneaţă

    (Academy of Economic Studies, Bucharest, Romania)

Abstract

The paper investigates the long-run relationship between commerce intensity and a measure of sustainable development for ten ex-communist countries that have recently joined the EU. The originality of this paper consists in applying the co-integration testing techniques for panel data regarding commerce and the “authentic” savings rate, an indicator of sustainable development, which determines the productive base that will be inherited by future generations. Econometric tests suggest a negative long-run relationship between commerce intensity and sustainable development. This result is in agreement with conclusions of other studies that have documented, in the region, an economic growth fueled by the adoption of unsustainable western consumption ideals, a low public consciousness about ecological values and weak institutions dealing with environmental issues at both government and civil society level. The negative correlation that was found could be a symptom for an evolution stage towards an economic and social maturity where commerce expansion is synchronized with accumulation of wealth that will be inherited by future generations.

Suggested Citation

  • Basarab Gogoneaţă, 2010. "The Long-Run Relationship Between Commerce And Sustainable Development In Baltic And Central And Eastern European Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 12(27), pages 36-51, February.
    • Handle: RePEc:aes:amfeco:v:12:y:2010:i:27:p:36-51
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    References listed on IDEAS

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    Cited by:

    1. Viorel Coca & Mihaela Dobrea & Cristinel Vasiliu, 2013. "Towards a sustainable development of retailing in Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(Special 7), pages 583-602, November.
    2. Armand Krasniqi, 2016. "The issue of the liquidation process of social enterprises during privatization process in Kosovo," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 6(Special), pages 186-195, October.

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    More about this item

    Keywords

    sustainable development; commerce; Central and Eastern Europe; genuine savings; co-integration; panel data;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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