مجلة البشائر الاقتصادية
Volume 11, Numéro 1, Pages 442-459
2025-04-27

Balancing Trade And Ecology The Impact Of Globalization On Algeria’s Carbon Footprint

Authors : Kheroua Kheir Eddine . Khaouani Leila .

Abstract

This study aims to show the impact of trade openness and foreign direct investment (FDI)on CO₂ emissions in Algeria, incorporating key variables such as GDP and urbanization. Using the ARDL approach for the period 1970 to 2023 in EViews 13, the analysis determines short-run and long-run associations, including the interaction between trade openness and FDI. The results support a persistent long-term link between economic growth and emissions, highlighting the ecological consequences of industrial expansion. Notably, while FDI alone contributes to higher emissions, its interaction with trade openness helps mitigate environmental impacts by facilitating cleaner technologies. These findings provide new insights into the relationship between economic globalization and environmental sustainability in Algeria.

Keywords

Trade openness; Globalization; CO₂ missions; Foreign direct investment (FDI); Environmental sustainability.