Exploring the Nexus Between Trade and Environmental Quality in South Africa Abubakar Sadiq Ibrahim
School of Management and Economics, Beijing Institute of Technology, Beijing, 100181, China.
Centre for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100181, China
Abstract
The trajectory of environmental sustainability is closely intertwined with trade liberalization. This connection is particularly crucial in developing countries experiencing rapid economic expansion and integration into the global economy. This study aims to highlight these significant relationships with a specific focus on South Africa using data from 1980 to 2020. The research on South Africa^s evolving trade practices provides a unique opportunity to explore the interplay between trade and environmental quality. However, to achieve the goal, the study will employ the Autoregressive Distributed Lag (ARDL) Bounds method and Granger causality test in analyzing the data. The ARDL Bounds approach was chosen for its ability to examine both short-run and long-run relationships, while the Granger causality test provided insights into the direction of causality between the variables. This combination of robust econometric techniques enhances the reliability and depth of the study^s findings, leading to a more comprehensive understanding of the complex relationship between trade and environmental quality in the country. The research findings are expected to provide significant policy implications for policymakers in South Africa and similar economies, helping them balance economic growth and environmental sustainability in their policy decisions. Furthermore, the research will contribute to the global discourse on ecological protection and sustainable development by shedding light on the environmental impacts of trade practices in developing nations. By focusing on South Africa, the study aims to address a gap in the existing literature and provide a more comprehensive understanding of the trade-environment nexus in the context of a rapidly developing economy. The research findings can also offer practical guidance for stakeholders, businesses, and civil society organizations operating in developing economies, assisting them in aligning their activities with sustainable trade practices and environmental conservation efforts.
Keywords: Environmental quality, Trade openness, economic growth, South Africa, CO2 emissions
