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Relationship between Economic Growth, Trade and Environment: Evidence from D8 Countries

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  • Abbas Rezazadeh Karsalari
  • Mohsen Mehrara
  • Maysam Musai
  • Mosa Mohammadi

Abstract

This paper investigates the causal relationship between environmental quality, economic growth and trade in D8 countries by using panel unit root tests and panel cointegration analysis for the period 1970-2011. The results suggest that there is a long-run relationship between these variables. Emissions have a positive long-run relationship with per capita income and trade. Moreover, the results show a unidirectional strong causality from economic growth to environment in these countries. We also find no causality between emissions and trade.

Suggested Citation

  • Abbas Rezazadeh Karsalari & Mohsen Mehrara & Maysam Musai & Mosa Mohammadi, 2014. "Relationship between Economic Growth, Trade and Environment: Evidence from D8 Countries," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 320-326, April.
    • Handle: RePEc:hur:ijaraf:v:4:y:2014:i:2:p:320-326
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    References listed on IDEAS

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