Trade, Environment and Agriculture Sector in Developing Countries: A Panel Data Analysis

Abstract

The purpose of this manuscript is to study the effect of Trade Liberalization and Environmental Quality on Agriculture Value Addition of Developing Countries. Panel ARDL or PMG method is used for empirical finding because selected variables are integrated of order 0 and 1. The results conclude that Labor Force and Trade Openness are noticed as reducing Agriculture Value Addition while Capital Stock, Carbon Dioxide Emission and other variables are observed as source of Higher Agriculture Value Addition in LDCs’. In terms of MDCs’, Carbon Dioxide Emission, Trade Openness and Price Level are negatively related with Agriculture Value Addition. Regarding, HDCs’ Trade Openness is boosting Agriculture Value Addition while Carbon Dioxide Emission is shrinking Agriculture Value Addition. In the group of all Developing Countries, the Carbon Dioxide Emission and Trade Openness are motivating factors for Agriculture Value Addition. Carbon Dioxide Emission positively correlates with agriculture value needs to reduce the use of conservative means of production and promote efficient agriculture machinery. The quality of agricultural products must be increased more so that the exports become an encouraging factor. It is furthermore suggested that the cultivated area of agriculture sector must not be used for industrial or residential purpose