Abstract:

Purpose: The aim of this study is to evaluate trade and environmental degradation in the context of export product diversification and ecological footprint in the sample of Turkey. Design/Methodology: In the study, econometric analyzes were carried out by using the data covering the period 1962-2014. Unit root analyzes were performed with Augmented Dickey-Fuller (ADF) and Phillips Perron (PP). In the study, it was decided to use the Johansen cointegration analysis according to the unit root results. Finally, the Fully Modified Least Squares Method (FMOLS) was used for the estimation of the long-term coefficients in the model. Findings: As a result of the analysis; it has been determined that there is a cointegration relationship between the series. Long-term coefficient results with FMOLS show that energy consumption and renewable energy consumption are statistically insignificant. For other variables, the findings show that a 1% increase in economic growth and export product diversification variables increases the ecological footprint by 0.21% and 0.17%, respectively. Limitations: Since the export product diversification data published by the IMF is available until 2014, the study is limited to 2014. Originality/Value: Export product diversification reflects the characteristics of foreign trade better than other trade variables and has been widely accepted in the literature in recent years. Similarly, the ecological footprint was chosen as an environmental variable because it is more inclusive than the carbon emissions. Since it is the first study to reveal the relationship between ecological footprint and export product diversification in Turkey, this study will make an important contribution to the literature.

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