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Trade openness and co2 emissions in tunisia

TLDR
In this paper, the authors disentangle the long and short-run relationship between trade openness, income per capita and CO2 emissions in Tunisia, as well as the extent of Granger causality among these variables.
Abstract
By reallocating resources among more or less polluting sectors, trade reforms affect pollution levels directly. They also affect pollution indirectly through their impact on economic activity and income levels, which then affect not only emissions, but also the demand for higher environmental standards. The sign of the direct and indirect effects is ambiguous. In other words, whether trade openness leads to more or less pollution is an empirical question. Using cointegration techniques, we disentangle the long- and short-run relationship between trade openness, income per capita and CO2 emissions in Tunisia, as well as the extent of Granger causality among these variables. Results suggest that the direct effect of trade openness on CO2 emissions is positive both in the short and the long run, but the indirect effect is negative at least in the long run. The overall effect is positive both in the short and long run, highlighting the importance for trade reforms to be accompanied by strong environmental pol...

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References
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Journal ArticleDOI

Co-integration and Error Correction: Representation, Estimation and Testing

TL;DR: The relationship between co-integration and error correction models, first suggested in Granger (1981), is here extended and used to develop estimation procedures, tests, and empirical examples.
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Distribution of the Estimators for Autoregressive Time Series with a Unit Root

TL;DR: In this article, the limit distributions of the estimator of p and of the regression t test are derived under the assumption that p = ± 1, where p is a fixed constant and t is a sequence of independent normal random variables.
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Testing for a Unit Root in Time Series Regression

TL;DR: In this article, the authors proposed new tests for detecting the presence of a unit root in quite general time series models, which accommodate models with a fitted drift and a time trend so that they may be used to discriminate between unit root nonstationarity and stationarity about a deterministic trend.
Journal ArticleDOI

Bounds testing approaches to the analysis of level relationships

TL;DR: In this paper, the authors developed a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary.
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