ANALYZING THE RELATIONSHIP BETWEEN ECONOMIC COMPLEXITY, CO2 EMISSIONS AND ECONOMIC GROWTH IN EMERGING MARKET ECONOMIES

OpenAlex İngilizce

The aim of the study is to determine the causality relationship between growth figures, which are considered as development indicators, and carbon dioxide emissions as an indicator of environmental degradation and the economic complexity index as an economic indicator.In this context, an analysis was conducted on 14 developing country economies for the period 1995-2022.In the study, Kónya (2006) causality test, Emirmahmutoğlu and Köse (2011) causality test and Dumitrescu and Hurlin (2012) causality tests were used to analyze causality relationships on panel data sets.The findings of the study reveal that the economic complexity index has a unidirectional causality relationship with growth.This suggests that an increase in the economic complexity index positively affects growth, but growth does not have a direct effect on economic complexity.Moreover, a bidirectional causality relationship was found between growth and carbon dioxide emissions.This finding suggests that increased economic growth increases carbon dioxide emissions, but at the same time, increased carbon dioxide emissions affect economic growth.These results suggest that policies of environmental sustainability and economic complexity may have important implications for growth strategies in developing countries.