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Trade Liberalization and Environmental Sustainability Risk: Do Governance and Regulatory Structures Influence the Dynamics?

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  • Rexford Abaidoo
  • Elvis Kwame Agyapong

Abstract

This study examines the effect of trade openness on environmental sustainability risk, with emphasis on the role of governance and regulatory factors. Data for the study were compiled from 39 countries in Sub-Saharan Africa (SSA) from 2001 to 2018. Results from a two-step system generalized method of moments estimation suggest that for the sub-region, governance and regulatory variables significantly moderate the trade openness–CO2 emission nexus, suggesting that improved governance and regulatory structures help in reducing CO2 emissions associated with trade openness. For the trade openness–ecological footprint relationship, the empirical estimates further suggest that government effectiveness significantly moderates the nexus.

Suggested Citation

  • Rexford Abaidoo & Elvis Kwame Agyapong, 2022. "Trade Liberalization and Environmental Sustainability Risk: Do Governance and Regulatory Structures Influence the Dynamics?," The International Trade Journal, Taylor & Francis Journals, vol. 36(5), pages 353-376, September.
    • Handle: RePEc:taf:uitjxx:v:36:y:2022:i:5:p:353-376
    DOI: 10.1080/08853908.2022.2092566
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    Cited by:

    1. Muhammad Asif & Jian-Qiao Li & Muhammad Azam Zia & Muhammad Hashim & Uzair Aslam Bhatti & Mughair Aslam Bhatti & Ahmad Hasnain, 2024. "Environmental Sustainability in BRICS Economies: The Nexus of Technology Innovation, Economic Growth, Financial Development, and Renewable Energy Consumption," Sustainability, MDPI, vol. 16(16), pages 1-29, August.
    2. Atif Jahanger & Daniel Balsalobre-Lorente & Mumtaz Ali & Ahmed Samour & Shujaat Abbas & Turgut Tursoy & Foday Joof, 2024. "Going away or going green in ASEAN countries: Testing the impact of green financing and energy on environmental sustainability," Energy & Environment, , vol. 35(7), pages 3759-3784, November.

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