Open AccessDynamic linkage between trade openness and sustainable development: Evidence from the BRICS countries
Author(s) -
Mehraj Sheikh Ahmad,
Mushtaq Ahmad,
Rana Masood Zehra
Publication year - 2021
Publication title -
brics journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2712-7702
pISSN - 2712-7508
DOI - 10.38050/2712-7508-2021-27
Subject(s) - openness to experience , sustainable development , economics , sustainability , distributed lag , linkage (software) , foreign direct investment , panel data , international economics , international trade , macroeconomics , political science , econometrics , psychology , social psychology , ecology , biochemistry , chemistry , gene , law , biology
The link between trade and sustainable development has been largely analyzed on a piecemeal basis. A comprehensive study simultaneously examining economic, social and environmental aspects of sustainable development is needed to ensure coherence between the competing results of previous studies. This study aims to examine the relevance of trade openness in defining sustainable development, with special focus on five emerging countries known as BRICS, using the dynamic panel autoregressive distributed lag (ARDL) approach. The results indicate that economic growth has a tendency to enhance sustainability in both the long and short run. However, trade openness, energy consumption and foreign direct investment are extremely detrimental for sustainable development.