DOI: 10.3897/brics-econ.7.e186730

Authors: Muhammad Sarmad Malik, Imran Ali, Vardah Iqbal, Qurat Ul Ain

Abstract: This study provides an empirical analysis of the relationship between trade and the environment in Singapore. It offers valuable insights into reconciling economic growth and environmental sustainability in this globally significant trade center and contributes significantly to policy formulation for trade-oriented economies. The paper examines empirical trends in trade openness, foreign direct investment (FDI), economic growth, sectoral contributions (agriculture, industry and services), and renewable energy and CO₂ emissions in Singapore from 1991 to 2024. To consider both linear and non-linear dynamics, a multi-model approach is used which includes fully modified ordinary least squares (FMOLS), canonical co-integrating regression (CCR), autoregressive distributed lag (ARDL) and non-linear (NARDL). The findings show that there is a positive link between total trade, foreign direct investment (FDI) and CO₂ emissions. Meanwhile, trade in commodities, renewable energy and the services sector are linked to negative effects, with industry showing the greatest positive impact on emissions. These asymmetric effects suggest different responses to economic shocks, with policy implications focusing on the expanded application of renewable energy, greater regulation of energy-intensive industries and the strategic use of Singapore’s institutional strengths to promote sustainable trade practices. It is concluded that narrowing the gap between urbanization and trade structure is a strategic approach to achieving economic prosperity and meeting the goal of global sustainable development.

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DOI: 10.3897/brics-econ.4.e101915

Authors: Liudmila Chikhun, Igor Romanov

Abstract: The paper examines the key economic and institutional factors that determine the participation of developing countries in global value chains (GVCs). To assess the impact of a number of factors on the foreign value added in export of developing countries, an econometric model for 84 countries for the period 1999-2018 is used. Obtained results indicate that developing countries with higher per capita income, more developed manufacturing industry, more open economy, less administrative burden on business and those actively engaged in foreign direct investment (FDI) activities demonstrate higher upward participation in the GVCs. It is also shown that trade liberalization and investments in foreign production strengthen the positions of developing countries in the GVCs in the long term. Based on these findings, recommendations are formulated for the state policy of these countries in order to accelerate their integration into more complex stages of the GVCs.

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