ANALYSIS OF THE IMPACT OF TRADE OPENNESS, CO2 EMISSIONS, AND CO2 INTENSITY ON THE GROSS DOMESTIC PRODUCT IN SELECTED SOUTH ASIAN AND ASEAN COUNTRIES: A PANEL DATA ANALYSIS

Abstract

In the last three decades, international trade has significantly changed in South Asian and ASEAN countries. The present study analyzes the correlation between trade openness, CO2 intensity, and CO2 emissions on real GDP based on the data of selected ASEAN and South Asian countries. This study also examines the elasticity of real GDP to trade openness in selected countries in international trade and whether trade openness is positive or negative for them, based on data from 1990 to 2021. Using the Fixed and Random effects models and data on 12 countries from 1990 to 2021, the results provide statistically significant support to the hypothesis given regression model assumptions and suggest that the elasticity of trade openness with respect to real GDP is positive on average throughout the panel of countries over time. Both models are statistically significant and illustrate that a percentage increase in real GDP correlates with trade openness.