Empirical Analysis on International Trade, Trade Structure and Carbon Dioxide Emissions

Abstract

This paper investigates the effects of international trade on carbon dioxide emissions, and specifically examines what impact each export industry brings to the atmosphere. Fixed effect regression analysis on 52 upper-middle income countries with time span of 15 years during 1996-2010 is utilized. By categorizing export industries and checking their effects separately, along with comparison between two different income groups, a trade pattern that can help to attain economic profit without giving much pressure on environment is discussed. According to the results, when high income countries export fuels and mining products, machinery and transport equipments to middle income countries, and middle income countries export textiles to high income countries, both economic and environmental benefits are able to be obtained in the short run.