Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam

Sajid Anwar; William R J Alexander

doi:10.1080/00036846.2016.1173182

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Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam

Journal article

Open access

Peer reviewed

Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam

Sajid Anwar and William R J Alexander

Applied Economics, Vol.48(53), pp.5221-5232

2016

DOI: https://doi.org/10.1080/00036846.2016.1173182

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Abstract

ARDL

energy consumption

openness

pollution

structural breaks

Vietnam

Since the beginning of economic reform in the 1980s and, in particular, with its openness to international trade accelerating since the 1990s, the Vietnamese economy has registered significant growth. At the same time, energy consumption and the level of pollution in Vietnam has also increased. This article aims to focus on the link between openness to trade and pollution in Vietnam. Due to lack of data, very few existing studies have focused on Vietnam. Using annual data from1980 to 2011 and employing the bounds testing approach to cointegration, based on an autoregressive distributed lagged (ARDL) model, we find that there is a statistically significant long-run relationship amongst pollution, openness to trade, energy consumption and real national income in Vietnam. This conclusion continues to hold when the possibility of a structural break in the relationship is allowed for using the Gregory-Hansen approach to cointegration. Analysis of the cointegration relationship suggests that, in response to any exogenous shock to the system, adjustment back to the long-run equilibrium is very fast. © 2016 Informa UK Limited, trading as Taylor & Francis Group

Details

Title: Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam
Authors: Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
William R J Alexander (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
Publication details: Applied Economics, Vol.48(53), pp.5221-5232
Publisher: Routledge
Date published: 2016
DOI: 10.1080/00036846.2016.1173182
ISSN: 0003-6846
Copyright note: Copyright © 2016. This is an Author's Accepted Manuscript of an article published in Applied Economics 2016, available online: http://www.tandfonline.com/10.1080/00036846.2016.1173182
Organisation Unit: School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
Language: English
Record Identifier: 99449868102621
Output Type: Journal article

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