Environmental impact of trade sector growth: evidence from Tanzania

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World Academy of Science, Engineering and Technology
This paper attempted to investigate whether there is Granger-causality running from trade to environment as evidenced in the changing climatic condition and land degradation. Using Tanzania as the reference, VAR-Granger-causality test was employed to rationalize the conundrum of causal-effect relationship between trade and environment. The changing climatic condition, as the proxy of both nitrous oxide emissions (in thousand metric tons of CO2 equivalent) and land degradation measured by the size of arable land were tested against trade using both exports and imports variables. The result indicated that neither of the trade variables Granger-cause the variability on gas emissions and arable land size. This suggests the possibility that all trade concerns in relation to environment to have been internalized in domestic policies to offset any likely negative consequence.
Full text article. Also available at https://doi.org/10.5281/zenodo.1129798
Trade sector, Sector growth, Granger-causality, Climatic condition, Land degradation, Environment, Gas emissions, Land size, Domestic policies
Lufuke, M. E. (2017). Environmental impact of trade sector growth: evidence from Tanzania. International Journal of Economics and Management Engineering, 11(4), 844-848.