Iranian Journal of Agricultural Economics and Development Research

Iranian Journal of Agricultural Economics and Development Research

Impact of Trade Liberalization on Environment Pollution in Iran

Authors
hossein mehrabi bashar abadi
seyed abdolmajid jalaei esfand abadi
ali akbar baghestani
habibeh sherafatmand
Abstract
Liberalization of international markets affects level of pollution in developing countries more than in developed countries. Therefore the impact of trade liberalization on environmental pollution is a challenge for policy makers. In this paper Auto Regressive Distributed Lags (ARDL) and Error Correction Model (ECM) methods are employed for a study of the relationship between trade liberalization and environmental pollution in Iran, in the long run as well as in the short run. Results indicate that pollution is negatively related to trade intensity and openness, while capital to labor ratio and Gross Domestic Product (GDP) are positively related to pollution. Results also show that trade liberalization in the long run can solve environmental problems. At last, the paper analyzes the Environmental Kuznets Curve as regards Iranian economies.
Keywords
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ARDL
Environmental pollution
Iran
Trade liberalization indexes