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The Causality Relationship between Trade and Environment in G7 Countries: Evidence from Dynamic Symmetric and Asymmetric Bootstrap Panel Causality Tests

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  • Veli Yılancı

    (Department of Economics, Faculty of Political Sciences, Canakkale Onsekiz Mart University, TR-17100 Canakkale, Turkey)

  • İbrahim Çütcü

    (Department of Economics, Faculty of Economics, Administrative and Social Sciences, Hasan Kalyoncu University, TR-27410 Gaziantep, Turkey)

  • Serkan Araci

    (Department of Basic Sciences, Faculty of Engineering, Hasan Kalyoncu University, TR-27410 Gaziantep, Turkey)

Abstract

In this paper, we test the dynamic symmetric and asymmetric causality relationship between the ecological footprint and trade openness in G7 countries by suggesting a new bootstrap panel causality test based on seemingly unrelated regressions. We analyzed the time-varying behavior of the symmetric and asymmetric panel causality relationship test to reveal the instabilities in the causality relationships. The obtained results suggest a relationship between the trade openness and ecological footprint in some years of the analysis period and between the negative and positive shocks.

Suggested Citation

  • Veli Yılancı & İbrahim Çütcü & Serkan Araci, 2022. "The Causality Relationship between Trade and Environment in G7 Countries: Evidence from Dynamic Symmetric and Asymmetric Bootstrap Panel Causality Tests," Mathematics, MDPI, vol. 10(15), pages 1-29, July.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:15:p:2553-:d:869190
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    References listed on IDEAS

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    4. Abban, Olivier Joseph & Xing, Yao Hong & Nuţă, Alina Cristina & Nuţă, Florian Marcel & Borah, Prasad Siba & Ofori, Charles & Jing, Yao Jing, 2023. "Policies for carbon-zero targets: Examining the spillover effects of renewable energy and patent applications on environmental quality in Europe," Energy Economics, Elsevier, vol. 126(C).

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