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The effects of international trade on structural change and CO₂ emissions

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  • Hübler, Michael
  • Bukin, Eduard
  • Xi, Yuting

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 (WIOD), covering the periods 1995-2009 and 2000-2014. The results show that international trade promotes structural convergence, which is enhanced by sectoral capital intensities. It seems, however, that in this millennium, structural divergence has been fostered by trade-induced specialization in CO2-intensive production.

Suggested Citation

  • Hübler, Michael & Bukin, Eduard & Xi, Yuting, 2020. "The effects of international trade on structural change and CO₂ emissions," Kiel Working Papers 2174, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:2174
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    References listed on IDEAS

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    More about this item

    Keywords

    structural change; international trade; CO2 emissions; 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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