Original scientific paper
https://doi.org/10.1080/1331677X.2022.2142148
Do economic complexity and trade diversification promote green growth in the BRICTS region? Evidence from advanced panel estimations
Baixun Wang
Wenjuan Zhao
Xiaodong Yang
Abstract
Green growth is a comprehensive and integrated approach that
ensures the potential economic deliverables of the natural capital on
a sustainable basis. Existing studies have explored various deriving
factors of green growth. However, none of the studies has evaluated
the combined effect of economic complexity, trade diversification,
renewable energy consumption, and environment-related taxes to
promote green growth. Therefore, this study quantified the impact
of these variables on achieving green growth goals for BRICTS countries
(Brazil, Russian Federation, India, China, Turkey, and South
Africa) from 1995 to 2018. The study addressed the potential econometric
issues of panel data, such as cross-section dependency, slope
heterogeneity, data nonstationary through robust testing. Cross-
Sectional ARDL has been applied to investigate the long-run and
short-run association among the study variables. The findings suggest
that economic complexity, trade diversification, renewable
energy consumption, and environment-related taxes significantly
drive green growth in BRICTS countries. However, their marginal contribution
substantially varied. Similar results are endorsed using alternative
estimators and offer pertinent policy implications.
Keywords
Green growth; economic complexity; trade diversification; renewable energy; environmentrelated taxes
Hrčak ID:
306717
URI
Publication date:
30.4.2023.
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