The Impact of Economic Growth and Foreign Trade on The Environmental Pollution: An ARDL Bounds Testing Approach for Turkey

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This paper examines the impact of economic growth and foreign trade on the environmental pollution as measured by carbon dioxide emissions in Turkey. Here, we use the ARDL bounds testing approach recently developed by Pesaran et al. over the time period 1980-2010. The results suggest that there is a long-run relationship between variables with the estimated elasticities of 1.520 and 0.265, respectively. In other words, economic growth and trade openness increase environmental pollution in the long run. The main conclusion of this paper is that in order to fulfill National Climate Change Action Plan 2011-2023 to reduce carbon dioxide emissions, Turkey needs a revised environmental policy.

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Economic growth , Foreign trade , Environmental pollution , ARDL bounds testing

Journal Of Management an‎d Economics

230

Journal Of Management an‎d Economics