Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with
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RESEARCH ARTICLE
Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with a Fourier function Veli Yilanci 1
&
Muhammed Sehid Gorus 2
Received: 7 May 2020 / Accepted: 10 July 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Recently, there has been renewed interest in the relationship between economic globalization and environmental pollution since various globalization indices are developed. Although several attempts have been made to investigate the impact of globalization on the environment, no known empirical research has focused on exploring the causal relationship between ecological footprint and economic globalization index (provided by KOF Swiss Economic Institute) considering also its subcomponents—trade and financial globalization indices. In this study, a new panel data technique for the causality analysis is developed (namely, panel Fourier Toda-Yamamoto approach) and applied to ecological footprint-economic globalization nexus in 14 MENA (Middle East and North Africa) countries during the period 1981–2016. The empirical results highlight that ecological footprint Granger causes economic, trade, and financial globalization for the panel. Besides, it is found that financial globalization has a predictive power to predict further values of environmental degradation in the MENA countries. The empirical results of this paper have a number of practical implications for policymakers. Especially, policymakers should be careful about implementing environmental policies since they may affect economic (trade and financial) activities negatively. Keywords Ecological footprint . Economic globalization . Financial globalization . MENA countries . Panel Fourier Toda-Yamamoto causality . Trade globalization
Introduction Environmental degradation has been one of the main issues of the world since the second period of the twentieth century. Rising global awareness on environmental issues has pushed the intergovernmental bodies to organize international actions such as the Kyoto Protocol and the Paris Agreement. The main goals of these international agreements can be stated as
Responsible Editor: Nicholas Apergis * Muhammed Sehid Gorus [email protected] Veli Yilanci [email protected] 1
Department of Econometrics, Sakarya University, Kemalpaşa Mahallesi, Üniversite Caddesi, 54050 Serdivan, Sakarya, Turkey
2
Department of Economics, Ankara Yıldırım Beyazıt University, Esenboğa Campus, Faculty of Political Sciences, 06670, Çubuk, Ankara, Turkey
decreasing the pollution level in the world and provide sustainable economic growth for the economies. Besides, practitioners of environmental economics have been investigating economic factors affecting environmental pollution for a long time for both developed and developing countries such as AlMulali et al. (2013), Omri et al. (2015), Charfeddine and Mrabet (2017), Yilanci and Ozgur (2019), Ibrahim and Alola (2020), and Nathaniel et al. (2020). In the empirical literature, in
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