Abstract:

The concept of international trade, known as trade open to the outside and providing certain advantages to the countries by the expansion of the volume of foreign trade, as a result of globalization, has also brought global competition. In particular, developing countries prefer pollution-creating production structures to reach the income levels of developed countries. But companies that prefer dirty industries have turned social costs into high production structures in order to reach high income levels. For the example of Turkey, which is considered as a developing country in the study, the direction and degree of the relationship of the concept of external transparency with environmental pollution has been studied. For this purpose, the ARDL model was used in time series analysis that included the data set between 1980 and 2016. According to the results obtained from the study, for the example of Turkey, which carries the general characteristics of the function in the opposite U form expressed by the Environmental Kuznets Curve, the concept of external transparency continues to the process of creating negative effects on the environment.