The Causality Relationship between Trade and Environment in G7 Countries: Evidence from Dynamic Symmetric and Asymmetric Bootstrap Panel Causality Tests

Yılancı V., Çütçü İ., Aracı S.

MATHEMATICS, vol.10, no.15, pp.1-28, 2022 (SCI-Expanded)

  • Publication Type: Article / Article
  • Volume: 10 Issue: 15
  • Publication Date: 2022
  • Doi Number: 10.3390/math10152553
  • Journal Name: MATHEMATICS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Aerospace Database, Communication Abstracts, Metadex, zbMATH, Directory of Open Access Journals, Civil Engineering Abstracts
  • Page Numbers: pp.1-28
  • Çanakkale Onsekiz Mart University Affiliated: Yes

Abstract

In this paper, we test the dynamic symmetric and asymmetric causality relationship between the ecological footprint and trade openness in G7 countries by suggesting a new bootstrap panel causality test based on seemingly unrelated regressions. We analyzed the time-varying behavior of the symmetric and asymmetric panel causality relationship test to reveal the instabilities in the causality relationships. The obtained results suggest a relationship between the trade openness and ecological footprint in some years of the analysis period and between the negative and positive shocks.