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GTAP Resources: Resource Display

GTAP Resource #6233

"CO2 Emissions, Environmental Provisions and Global Value Chains in MENA Countries"
by Guedidi, Insaf and Leila Baghdadi

The paper investigates the relationship between carbon emissions, environmental provisions in Regional Trade Agreements (RTAs) and Global Value Chains (GVCs) using a panel data gravity model for the Middle East and North Africa (MENA) region over the period from 1990 to 2015. We find that RTAs have a positive effect on carbon emissions. However, good institutional quality in MENA region decreases carbon footprint. Participation of MENA countries in GVCs rises environmental degradation in upstream Low-Tech Manufacturing (LTM) sectors and downstream High-Tech Manufacturing (HTM) and Primary sectors. Moreover, we examine the interaction effects between RTAs with environmental laws and participation of MENA countries in GVCs. Results confirm that participating in upstream activities in GVCs and signing more RTAs with environmental laws reduce pollution in LTM sectors. Furthermore, our study proves that RTAs (with or without environmental laws) could reduce carbon emissions in MENA region participating in backward GVCs. Backward participation is related to trade in LTM and primary sectors. Therefore, there is a vital need to understand the GVC landscape in MENA region to be able to set suitable RTAs with environmental provisions in order to reduce pollution and contribute to sustainable upgrading in GVCs.

Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2021
Created: Guedidi, I. (4/12/2021)
Updated: Guedidi, I. (6/23/2021)
Visits: 354
- Trade and the environment
- Domestic policy analysis
- Multilateral trade negotiations
- Preferential trading arrangements
- Other data bases and data issues
- Africa (North)
- Middle East

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