IDEAS home Printed from https://ideas.repec.org/a/spr/circec/v5y2025i1d10.1007_s43615-024-00414-1.html
   My bibliography  Save this article

Asymmetry Effects of International Trade Components on Environmental Quality in BRICS Economies: Implications for Sustainable Circular Economy

Author

Listed:
  • Gupteswar Patel

    (Indian Institute of Technology Kharagpur
    Indian Institute of Management Bodh Gaya)

  • Mantu Kumar Mahalik

    (Indian Institute of Technology Kharagpur)

  • Hrushikesh Mallick

    (Centre for Development Studies)

Abstract

The evolutions of liberalization and globalization of economies have given rise to greater concern over climate change and economic development in the recent circular economy context. The composition of international trade for an individual country changes over a period of time [14, 15]. Against this backdrop, the purpose of this study is to examine the segregated impacts of traditional and modern components of trade (exports and imports) on environmental degradation in BRICS (Brazil, Russia, India, China, South Africa) countries in an extended IPAT framework. The environmental degradation model controls for population growth, economic growth, and, technology. Using a balanced panel data structure from 1996–2018 with panel regression techniques (viz. PMG-ARDL and FGLS), this study finds that modern exports and imports, and technological advancement improve environmental quality, while traditional exports and imports along with population growth and economic growth degrade it. Our study concludes that traditional trade components degrade environmental quality while modern trade components improve it. This finding has crucial policy implications for both international trade and environmental sustainability domains of BRICS economies.

Suggested Citation

  • Gupteswar Patel & Mantu Kumar Mahalik & Hrushikesh Mallick, 2025. "Asymmetry Effects of International Trade Components on Environmental Quality in BRICS Economies: Implications for Sustainable Circular Economy," Circular Economy and Sustainability, Springer, vol. 5(1), pages 393-411, February.
    • Handle: RePEc:spr:circec:v:5:y:2025:i:1:d:10.1007_s43615-024-00414-1
    DOI: 10.1007/s43615-024-00414-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43615-024-00414-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43615-024-00414-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joakim Westerlund, 2008. "Panel cointegration tests of the Fisher effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 193-233.
    2. Esso, Loesse Jacques & Keho, Yaya, 2016. "Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries," Energy, Elsevier, vol. 114(C), pages 492-497.
    3. Abdul Mansoor & Baserat Sultana, 2018. "Impact of Population, GDP and Energy Consumption on Carbon Emissions: Evidence from Pakistan Using an Analytic Tool IPAT," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 183-190.
    4. Dong, Kangyin & Sun, Renjin & Hochman, Gal, 2017. "Do natural gas and renewable energy consumption lead to less CO2 emission? Empirical evidence from a panel of BRICS countries," Energy, Elsevier, vol. 141(C), pages 1466-1478.
    5. E. Cristina Echevarria, 2008. "International trade and the sectoral composition of production," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 192-206, January.
    6. Li, Li & Hong, Xuefei & Peng, Ke, 2019. "A spatial panel analysis of carbon emissions, economic growth and high-technology industry in China," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 83-92.
    7. Eichengreen, Barry & Gupta, Poonam, 2012. "The Real Exchange Rate and Export Growth: Are Services Different?," Working Papers 12/112, National Institute of Public Finance and Policy.
    8. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    9. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    10. Li, Zhigang & Xu, Nan & Yuan, Jia, 2015. "New evidence on trade-environment linkage via air visibility," Economics Letters, Elsevier, vol. 128(C), pages 72-74.
    11. Engle, R. F. & Granger, C. W. J. & Hylleberg, S. & Lee, H. S., 1993. "The Japanese consumption function," Journal of Econometrics, Elsevier, vol. 55(1-2), pages 275-298.
    12. Managi, Shunsuke & Hibiki, Akira & Tsurumi, Tetsuya, 2009. "Does trade openness improve environmental quality?," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 346-363, November.
    13. Zheng Fang & Bihong Huang & Zhuoxiang Yang, 2020. "Trade openness and the environmental Kuznets curve: Evidence from Chinese cities," The World Economy, Wiley Blackwell, vol. 43(10), pages 2622-2649, October.
    14. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
    15. Zhike Lv & Ting Xu, 2019. "Trade openness, urbanization and CO emissions: Dynamic panel data analysis of middle-income countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(3), pages 317-330, April.
    16. Baltagi, Badi H. & Feng, Qu & Kao, Chihwa, 2012. "A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model," Journal of Econometrics, Elsevier, vol. 170(1), pages 164-177.
    17. Konstantinos Demestichas & Emmanouil Daskalakis, 2020. "Information and Communication Technology Solutions for the Circular Economy," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
    18. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Correction to: Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 667-667, August.
    19. Shahbaz, Muhammad & Nasreen, Samia & Ahmed, Khalid & Hammoudeh, Shawkat, 2017. "Trade openness–carbon emissions nexus: The importance of turning points of trade openness for country panels," Energy Economics, Elsevier, vol. 61(C), pages 221-232.
    20. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 631-665, August.
    21. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    22. Jack Barrie & Patrick Schröder, 2022. "Circular Economy and International Trade: a Systematic Literature Review," Circular Economy and Sustainability, Springer, vol. 2(2), pages 447-471, June.
    23. Steinfatt, Karsten, 2020. "Trade policies for a circular economy: What can we learn from WTO experience?," WTO Staff Working Papers ERSD-2020-10, World Trade Organization (WTO), Economic Research and Statistics Division.
    24. Hansen, Christian B., 2007. "Generalized least squares inference in panel and multilevel models with serial correlation and fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 670-694, October.
    25. Riekhof, Marie-Catherine & Regnier, Esther & Quaas, Martin F., 2019. "Economic growth, international trade, and the depletion or conservation of renewable natural resources," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 116-133.
    26. Abdul Mansoor & Baserat Sultana, 2018. "Impact of Population, GDP and Energy Consumption on Carbon Emissions: Evidence from Pakistan Using an Analytic Tool IPAT," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 183-190.
    27. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Awad, Atif, 2019. "Does economic integration damage or benefit the environment? Africa's experience," Energy Policy, Elsevier, vol. 132(C), pages 991-999.
    2. Ajayi, Patricia & Ogunrinola, Adedeji, 2020. "Growth, Trade Openness and Environmental Degradation in Nigeria," MPRA Paper 100713, University Library of Munich, Germany.
    3. Sylvanus Kwaku Afesorgbor & Binyam Afewerk Demena, 2022. "Trade Openness and Environmental Emissions: Evidence from a Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(2), pages 287-321, February.
    4. Hanen Ragoubi & Zouheir Mighri, 2021. "Spillover effects of trade openness on CO2 emissions in middle‐income countries: A spatial panel data approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 835-877, June.
    5. Iftikhar Yasin & Nawaz Ahmad & Muhammad Aslam Chaudhary, 2021. "The impact of financial development, political institutions, and urbanization on environmental degradation: evidence from 59 less-developed economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6698-6721, May.
    6. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    7. Mansor H. Ibrahim, 2018. "Trade–finance complementarity and carbon emission intensity: panel evidence from middle-income countries," Environment Systems and Decisions, Springer, vol. 38(4), pages 489-500, December.
    8. Bo Yang & Minhaj Ali & Shujahat Haider Hashmi & Mohsin Shabir, 2020. "Income Inequality and CO 2 Emissions in Developing Countries: The Moderating Role of Financial Instability," Sustainability, MDPI, vol. 12(17), pages 1-24, August.
    9. Yu, Zhang & Khan, Syed Abdul Rehman & Ponce, Pablo & Lopes de Sousa Jabbour, Ana Beatriz & Chiappetta Jabbour, Charbel Jose, 2022. "Factors affecting carbon emissions in emerging economies in the context of a green recovery: Implications for sustainable development goals," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    10. Muhammad Azam & Zia Ur Rehman & Yusnidah Ibrahim, 2022. "Causal nexus in industrialization, urbanization, trade openness, and carbon emissions: empirical evidence from OPEC economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 13990-14010, December.
    11. Pavlos Stamatiou, 2023. "Μοdeling Environmental Degradation: The Effects of Electricity Consumption, Economic Growth and Globalization," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 62-72, September.
    12. Zahed Ghaderi & Behnaz Saboori & Mana Khoshkam, 2023. "Revisiting the Environmental Kuznets Curve Hypothesis in the MENA Region: The Roles of International Tourist Arrivals, Energy Consumption and Trade Openness," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    13. Paul Terhemba Iorember & Solomon Gbaka & Gylych Jelilov & Nargiza Alymkulova & Ojonugwa Usman, 2022. "Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries," African Development Review, African Development Bank, vol. 34(2), pages 175-187, June.
    14. Qamruzzaman, Md & Jianguo, Wei, 2020. "The asymmetric relationship between financial development, trade openness, foreign capital flows, and renewable energy consumption: Fresh evidence from panel NARDL investigation," Renewable Energy, Elsevier, vol. 159(C), pages 827-842.
    15. Osarumwense Osabuohien-Irabor & Igor Mikhailovich Drapkin, 2022. "The Impact of Technological Innovation on Energy Consumption in OECD Economies: the role of Outward Foreign Direct Investment and International Trade Openness," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 317-333, July.
    16. Ghannouchi, Imen, 2023. "Examining the dynamic nexus between industry 4.0 technologies and sustainable economy: New insights from empirical evidence using GMM estimator across 20 OECD nations," Technology in Society, Elsevier, vol. 75(C).
    17. Daberechi Chikezie Ekwueme & Taiwo Temitope Lasisi & Kayode Kolawole Eluwole, 2023. "Environmental sustainability in Asian countries: Understanding the criticality of economic growth, industrialization, tourism import, and energy use," Energy & Environment, , vol. 34(5), pages 1592-1618, August.
    18. Eshagh Mansourkiaee, 2023. "Estimating energy demand elasticities for gas exporting countries: a dynamic panel data approach," SN Business & Economics, Springer, vol. 3(1), pages 1-28, January.
    19. Li, Jiaman & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How green trade influences pollution emissions in China: A provincial perspective," Energy Economics, Elsevier, vol. 115(C).
    20. Gaies, Brahim & Nakhli, Mohamed Sahbi & Sahut, Jean-Michel, 2022. "What are the effects of economic globalization on CO2 emissions in MENA countries?," Economic Modelling, Elsevier, vol. 116(C).

    More about this item

    Keywords

    Modern exports and imports; Traditional exports and imports; CO2 emissions; IPAT; And BRICS;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:circec:v:5:y:2025:i:1:d:10.1007_s43615-024-00414-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.