The impact of trade on environmental quality and sustainable development in Ghana
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Date
2024
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Publisher
World Development Sustainability
Abstract
Since gaining independence in 1957, Ghana has significantly increased its economic ties with the global com munity through trade liberalization policies. However, this integration has profoundly affected the environment,
particularly in utilizing natural resources, and has subsequently impacted sustainable development. This study
examines the relationship between trade, environmental considerations, and sustainable development within the
Ghanaian context. Using the autoregressive distributed lag (ARDL) error correction estimation technique, we
found that trade positively impacts sustainable development in Ghana despite causing adverse environmental
effects. This suggests that economic gains are prioritized over environmental preservation, indicating weak
sustainability. However, sustainable development requires a balance between economic, social, and environ mental factors, and a shift towards strong sustainability may be necessary for long-term sustainability. Therefore,
pivotal policy interventions are warranted to navigate the path toward strong sustainability. Mechanisms that
ensure the judicious pricing of Ghana’s forest and natural resources are necessary to optimize resource exploi tation while mitigating negative externalities. Ghana can promote inclusive and sustainable development by
establishing a delicate balance between economic expansion and environmental stewardship.
Description
Research Article
Keywords
Sustainable Development, Environmental quality, Trade