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THE NEXUS BETWEEN TRADE OPENNESS AND ENVIRONMENTAL DEGRADATION: A VECM ANALYSIS

Jurnal Ilmiah Ilmu Terapan Universitas Jambi · Vol. 8 No. 2 (2024) · pp. 703–719

DOI
10.22437/jiituj.v8i2.36595
ISSN
2580-2259, 2580-2240
Published
2024-09-23
Publisher
LPPM Universitas Jambi
Language
en
License
creativecommons.org/licenses/by/4.0

Abstract

This research aimed to analyze the influence of trade openness, ICT, per capita income, and Human Development Index on environmental quality in Upper-Middle Income countries in the short and long term and how per capita income influenced environmental quality in the U-shaped EKC hypothesis in Upper-Middle Income countries over the 1990-2020 periods using the VECM Panel analysis. Several findings were revealed in this research. First, the coefficient of trade openness in the long-term and short-term on environmental quality was positive and statistically significant at the 1% level. Second, the relationship between ICT and environmental quality had a positive influence in the short term and a negative influence in the long term. Third, the relationship between per capita income and environmental quality positively influenced the long- and short-term. In these findings, an increase in per capita income increased carbon dioxide, which caused a decrease in environmental quality and emerged an inverted U relationship in the long- and short-term of the EKC hypothesis in UMI countries, with the turning point in the short-term being US$ 728,530 and in the long-term US$ 772,839. Finally, the Human Development Index in this research positively influences environmental quality in the short- and long-term. The outcomes of this study have considerable Policy implications regarding trade openness policy formulation to reduce environmental degradation, especially in Upper Middle-Income Countries.

Keywords

Collaboration network of the authors

32 authors · 63 co-authorship links · 4 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • State University of Semarang
  • Sultan Agung Islamic University
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
FX SugiyantoAffiliation unknown2
Barokah IsdaryantiState University of Semarang1
Miftah RahmanState University of Semarang1
Yohanes Leonardus SukestiyarnoState University of Semarang1
Totok Sumaryanto FlorentinusState University of Semarang1
Rizka Fibria NugrahaniAffiliation unknown1
Laila Indra LestariAffiliation unknown1
Retno SulistiyaningsihAffiliation unknown1
Dhieva Leona FebriantAffiliation unknown1
Muhammad AnasAffiliation unknown1
Agus ArifinAffiliation unknown1
Etty SoesilowatiAffiliation unknown1
Grace Natalia MarpaungAffiliation unknown1
Yozi Aulia RahmanAffiliation unknown1
Yustiko Arvan Gilang PangestuAffiliation unknown1
Indah SusilowatiAffiliation unknown1
Benny ImantriaAffiliation unknown1
Annisa FebiAffiliation unknown1
Lia AnjarsariAffiliation unknown1
Cut Misni MulasiwiAffiliation unknown1
Tohir TohirAffiliation unknown1
Efriyani SumastutiAffiliation unknown1
Himawan Arif SutantoAffiliation unknown1
Saiful Adhi SaputraAffiliation unknown1
Talitha WidiatningrumAffiliation unknown1
Sucihatiningsih Dian Wisika PrajantiAffiliation unknown1
Christina LitaayAffiliation unknown1
Dhea Rizky AmeliaAffiliation unknown1
Suyadi SuyadiAffiliation unknown1
Sapto BudoyoAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://online-journal.unja.ac.id/index.php/JIITUJ/oai, first harvested 5 Nov 2026, last seen 5 Nov 2026.
Original metadata (oai_dc)
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	<dc:title xml:lang="en">THE NEXUS BETWEEN TRADE OPENNESS AND ENVIRONMENTAL DEGRADATION : A VECM ANALYSIS</dc:title>
	<dc:creator xml:lang="en">Wicaksana, Tania</dc:creator>
	<dc:creator xml:lang="en">Widodo, Wahyu</dc:creator>
	<dc:subject xml:lang="en">EKC</dc:subject>
	<dc:subject xml:lang="en">Environment</dc:subject>
	<dc:subject xml:lang="en">ICT</dc:subject>
	<dc:subject xml:lang="en">Income</dc:subject>
	<dc:subject xml:lang="en">Trade Openness</dc:subject>
	<dc:description xml:lang="en">This research aimed to analyze the influence of trade openness, ICT, per capita income, and Human Development Index on environmental quality in Upper-Middle Income countries in the short and long term and how per capita income influenced environmental quality in the U-shaped EKC hypothesis in Upper-Middle Income countries over the 1990-2020 periods using the VECM Panel analysis. Several findings were revealed in this research. First, the coefficient of trade openness in the long-term and short-term on environmental quality was positive and statistically significant at the 1% level. Second, the relationship between ICT and environmental quality had a positive influence in the short term and a negative influence in the long term. Third, the relationship between per capita income and environmental quality positively influenced the long- and short-term. In these findings, an increase in per capita income increased carbon dioxide, which caused a decrease in environmental quality and emerged an inverted U relationship in the long- and short-term of the EKC hypothesis in UMI countries, with the turning point in the short-term being US$ 728,530 and in the long-term US$ 772,839. Finally, the Human Development Index in this research positively influences environmental quality in the short- and long-term. The outcomes of this study have considerable Policy implications regarding trade openness policy formulation to reduce environmental degradation, especially in Upper Middle-Income Countries.</dc:description>
	<dc:publisher xml:lang="en">LPPM Universitas Jambi</dc:publisher>
	<dc:date>2024-09-23</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://online-journal.unja.ac.id/JIITUJ/article/view/36595</dc:identifier>
	<dc:identifier>10.22437/jiituj.v8i2.36595</dc:identifier>
	<dc:source xml:lang="en">Jurnal Ilmiah Ilmu Terapan Universitas Jambi; Vol. 8 No. 2 (2024): Volume 8, Nomor 2, December 2024; 703-719</dc:source>
	<dc:source>2580-2259</dc:source>
	<dc:source>2580-2240</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://online-journal.unja.ac.id/JIITUJ/article/view/36595/19089</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2024 Tania Wicaksana, Wahyu Widodo</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by/4.0</dc:rights>
</oai_dc:dc>