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The Effects of International Trade on Structural Convergence and CO2 Emissions

Author

Listed:
  • Michael Hübler

    (Justus Liebig University Giessen
    Leibniz University Hannover)

  • Eduard Bukin

    (Justus Liebig University Giessen)

  • Yuting Xi

    (Leibniz University Hannover
    East China University of Science and Technology)

Abstract

This article introduces a new econometric model that includes an innovative measure of intersectoral structural change. This model describes the structural convergence (or divergence) of sector share patterns across countries (from the North-South or global perspective) influenced by international trade. The econometric analysis applies panel data estimators with different types of fixed effects to the 2013 and 2016 releases of the World Input-Output Database, covering the periods 1995–2009 and 2000–2014. The results show that international trade mostly promotes structural convergence, which is enhanced by sectoral capital intensities. It seems, however, that in this millennium, structural divergence, also fostered by international trade, occurred in terms of the CO $$_2$$ 2 intensity of production.

Suggested Citation

  • Michael Hübler & Eduard Bukin & Yuting Xi, 2022. "The Effects of International Trade on Structural Convergence and CO2 Emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 579-604, November.
    • Handle: RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00698-7
    DOI: 10.1007/s10640-022-00698-7
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    More about this item

    Keywords

    Structural change; International trade; CO2; Macro-econometrics; Panel data; WIOD;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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