Trade Openness and the Environment: A Time Series Study of ECOWAS Countries

This paper examines the relationship between international trade and the environment for the Economic Community of West African States (ECOWAS). It uses the bounds test for co integration to disentangle the long –run relationship and explore the extent of Granger causality among these variables. Results are mixed across countries. Results support that trade cause’s degradation of air quality in some countries while it is compatible with environmental improvements in other countries. We also find evidence of bidirectional causality between economic growth and CO2 emissions in four countries. In addition, it has been found that trade causes economic growth in six countries. These findings further confirm that studies based on pooled or cross-section data would provide incorrect inferences regarding the relationship between trade, economic growth and CO2 emissions and could be grossly misleading in formulating environmental policies for an individual country

Full Text: PDF     DOI: 10.15640/jeds.v4n4a6