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Trade, Environment Quality and Income in MENA Region

Author

Listed:
  • Abbas Rezazadeh Karsalari

    (Islamic Azad University, Tafresh Branch, Tafresh, Iran)

  • Mohsen Mehrara

    (University of Tehran, Tehran, Iran)

  • Maysam Musai

    (University of Tehran, Iran)

Abstract

This paper investigates the causal relationship between environmental quality, GDP and trade for MENA region countries by using panel unit root tests and panel cointegration analysis for the period 1970-2011. The results show a strong causality from GDP and trade to environmental quality in these countries. Yet, Trade and environmental quality does not have any significant effects on GDP in short- and long-run. It means that it is the trade and GDP that drives environmental quality in mentioned countries, not vice versa. So the findings of this paper support the point of view that the cost of higher trade and economic growth is paid in terms of poorer environment.

Suggested Citation

  • Abbas Rezazadeh Karsalari & Mohsen Mehrara & Maysam Musai, 2014. "Trade, Environment Quality and Income in MENA Region," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 2(2), pages 17-24, June.
    • Handle: RePEc:hyp:journl:v:2:y:2014:i:2:p:17-24
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    More about this item

    Keywords

    Unit root; Cointegration; Granger Causality; Environmental quality; Trade; Economic Growth;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • F1 - International Economics - - Trade
    • F18 - International Economics - - Trade - - - Trade and Environment

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