Volume 36, Issue 4 (IJIEPR- Special Issue 2025)                   IJIEPR 2025, 36(4): 127-144 | Back to browse issues page

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Ibrahim K H, Handoyo R D, Baraya A S, Istifadah N. Pollution Haven in Goods and Services Trade: Evidence from ECOWAS Member Countries. IJIEPR 2025; 36 (4) :127-144
URL: http://ijiepr.iust.ac.ir/article-1-2445-en.html
Pollution Haven in Goods and Services Trade: Evidence from ECOWAS Member Countries
Kabiru Hannafi Ibrahim1 , Rossanto Dwi Handoyo2 , Abdul-Azeez Sani Baraya1 , Nur Istifadah3
1- Department of Economics, Federal University Birnin Kebbi, Nigeria
2- Universitas Airlangga, Surabaya Indonesia , rossanto_dh@feb.unair.ac.id
3- Department of Economics, Universitas Airlangga
Abstract:   (615 Views)
Studies on trade and environmental pollution have explored the issue of pollution haven in goods and aggregate trade, but not in services. This study is therefore imperative, as it aims to examine the phenomenon of pollution haven in goods and services trade within the ECOWAS trading bloc from 2000 to 2023. The study examined whether developed countries have gained an advantage from open trade and transferred their polluting activities to ECOWAS member states. The study utilised panel data that comprised 15 member countries. Static and dynamic techniques of analysis were applied. Based on the theories underlying the analytical model, the results indicate that a rise in goods trade increases emissions. At the same time, services trade reduces emissions. The premise that trade shifts industry composition toward dirtier production is also supported. However, ECOWAS countries are exploring comparative advantages in labour-intensive industries that reduce pollution. Energy consumption exacerbates emissions, and trade in goods and services may bring energy-efficient technologies that lower pollution. ECOWAS countries are pollution haven in goods trade but not in services; that is, advanced economies use goods trade openness and transfer their pollution to the sub-region. These findings are further validated using other measures of pollution (GHG and PM2.5), enhancing the credibility and reliability of the research. Based on the study results, we provided policy implications to guide policymakers.
Keywords: Trade openness, CO2 emissions, static random coefficient, dynamic panel GMM, ECOWAS member countries
Full-Text [PDF 771 kb]   (133 Downloads)    
Type of Study: Research | Subject: Other Related Subject
Received: 2025/06/17 | Accepted: 2025/12/2 | Published: 2025/12/18
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