The impact of economic globalization on the environment.

Abstract This paper investigates the actual impact of economic Globalization through International Trade on the Environmental quality. More specifically, I will try to define the exact relationship between these two variables. In particular, applying the method of least squares (OLS) I examine the impact of International trade on two different environmental indicators, CO2 and SO2 emissions. The data that are being used are annual for 88 developing countries covering the period between 1990 and 2010. Moreover, in this paper, I am going to examine which other externalities may affect this relationship and whether these results change on different levels of income. According to the results, there is a positive relationship between International trade and the Environmental Indicators (CO2 and SO2 emissions) proving that Economic Globalization through International Trade affects negatively the environment of the Developing countries. Moreover, we found that there is a strong robustness of the Environmental Kuznets Curve, while these results do not change significantly in different levels of income.