Greening economic sectors through trade liberalization and efficient governance

Abstract Greening economic sectors has become a prominent focus in sustainability research over recent decades. This paper investigates how trade liberalization and effective governance influence the greening of the industrial and agricultural sectors within G7 countries from 1996 to 2022, utilizing...

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Main Author: Jingjing Qi
Format: Article
Language:English
Published: Springer Nature 2024-12-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-024-04214-8
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author Jingjing Qi
author_facet Jingjing Qi
author_sort Jingjing Qi
collection DOAJ
description Abstract Greening economic sectors has become a prominent focus in sustainability research over recent decades. This paper investigates how trade liberalization and effective governance influence the greening of the industrial and agricultural sectors within G7 countries from 1996 to 2022, utilizing data from the World Bank’s WGI database and the Autoregressive Distributed Lag (ARDL) model. Findings reveal that trade liberalization has a negative impact on both green industry and agriculture in both short- and long-term perspectives, with substantial declines noted. In contrast, good governance supports green industry development but has minimal impact on green agriculture, likely due to varying regulatory effects. Additionally, population growth and poverty hinder greening in both sectors, while higher income levels promote sustainable practices. Causality analysis indicates bidirectional relationships between governance, trade liberalization, and green industry. Policy recommendations include strengthening governance structures, adopting green trade policies, investing in eco-friendly technologies, addressing social inequalities, encouraging international partnerships, and establishing rigorous monitoring systems to advance sustainable development goals.
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spelling doaj-art-65ac45be08db4d11a629375cc70775df2024-12-22T12:21:42ZengSpringer NatureHumanities & Social Sciences Communications2662-99922024-12-011111810.1057/s41599-024-04214-8Greening economic sectors through trade liberalization and efficient governanceJingjing Qi0School of Economics, Central South University of Forestry and TechnologyAbstract Greening economic sectors has become a prominent focus in sustainability research over recent decades. This paper investigates how trade liberalization and effective governance influence the greening of the industrial and agricultural sectors within G7 countries from 1996 to 2022, utilizing data from the World Bank’s WGI database and the Autoregressive Distributed Lag (ARDL) model. Findings reveal that trade liberalization has a negative impact on both green industry and agriculture in both short- and long-term perspectives, with substantial declines noted. In contrast, good governance supports green industry development but has minimal impact on green agriculture, likely due to varying regulatory effects. Additionally, population growth and poverty hinder greening in both sectors, while higher income levels promote sustainable practices. Causality analysis indicates bidirectional relationships between governance, trade liberalization, and green industry. Policy recommendations include strengthening governance structures, adopting green trade policies, investing in eco-friendly technologies, addressing social inequalities, encouraging international partnerships, and establishing rigorous monitoring systems to advance sustainable development goals.https://doi.org/10.1057/s41599-024-04214-8
spellingShingle Jingjing Qi
Greening economic sectors through trade liberalization and efficient governance
Humanities & Social Sciences Communications
title Greening economic sectors through trade liberalization and efficient governance
title_full Greening economic sectors through trade liberalization and efficient governance
title_fullStr Greening economic sectors through trade liberalization and efficient governance
title_full_unstemmed Greening economic sectors through trade liberalization and efficient governance
title_short Greening economic sectors through trade liberalization and efficient governance
title_sort greening economic sectors through trade liberalization and efficient governance
url https://doi.org/10.1057/s41599-024-04214-8
work_keys_str_mv AT jingjingqi greeningeconomicsectorsthroughtradeliberalizationandefficientgovernance