Dynamic linkage between trade openness and sustainable development: Evidence from the BRICS countries

Abstract

The link between trade and sustainable development has been largely analyzed on a piecemeal basis. A comprehensive study simultaneously examining economic, social and environmental aspects of sustainable development is needed to ensure coherence between the competing results of previous studies. This study aims to examine the relevance of trade openness in defining sustainable development, with special focus on five emerging countries known as BRICS, using the dynamic panel autoregressive distributed lag (ARDL) approach. The results indicate that economic growth has a tendency to enhance sustainability in both the long and short run. However, trade openness, energy consumption and foreign direct investment are extremely detrimental for sustainable development.