The effects of globalization on environmental destruction: A study on NIC countries

Environmental problems, which have been on the agenda recently, continue to threaten the life of living things day by day. In particular, with the integration of the world's countries into the globalization trend, the effect of globalization on environmental degradation has started to be the subject of investigation. It is known that the effect of globalization on environmental degradation has been ignored until recently due to the positive effect of globalization on economic growth. However, in recent years, the decrease in environmental degradation all over the World have made the effects of globalization on environmental degradation a matter of discussion. In the study conducted to investigate the effect of globalization on environmental degradation, the long-term relationship between the variables was investigated by using the data covering the period between 1970 and 2016 belonging to the Newly Industrialized Countries (NIC Countries), and panel cointegration analysis was carried out. In the study, carbon emission (metric tons per capita) was used as an indicator of environmental degradation, and KOF Globalization Index published by the Swiss Economic Institute was used as an indicator of globalization. Within the scope of the study, cross-sectional dependence, unit root and homogeneity tests were carried out, respectively. After these tests were done, the Westerlund panel cointegration test was performed and a long-term relationship was found between the variables. Afterwards, the panel cointegration model was estimated on the basis of panel and unit. The conclusions reached are that globalization increases environmental degradation in NIC Countries. In the study, which also investigated the causality relationship between the variables, a bidirectional causality relationship was found between the variables.