The impact of international trade on the environmental quality in China from 1990 - 2020

Abstract

The general objective of this research is to examine the impact of international trade on the environmental quality in China by doing a time series data analysis starting from 1990 to 2020, also, it aims to analysis and prove how imports and exports can affect the Co2 emissions that is used to measure the environmental quality through the years. This will be illustrated through the study by using a comparative analysis in China since 1990 till 2020 by analyzing the impact of five independent variables which are trade of GDP, imports of goods and services, exports of goods and services, real GDP, FDI, and labor force by using several economic models. Furthermore, the paper used ordinary least squares regression (OLS) and the autoregressive distributed lag (ARDL) model. Therefore, the results concluded that the trade and exports have a positive impact in Co2 emissions, while the imports has a negative impact on the Co2 emissions.