Factors Influencing Climate-Smart Goods Trade in Some Developing Countries in the Middle East and North Africa Region: An Application of the Spatial Panel Model

ABSTRACT

Climate change is an important threat to agriculture and food security. The trade of climate-smart goods (CSGs) develops climate-friendly technologies, which could reduce the negative effects of climate change. This article aims to investigate the determinants of CSGs trade in some Middle East and North Africa countries. For this purpose, spatial panel models were estimated during the 2002 to 2016 period. Our findings showed that there are spatial effects in CSGs trade, indicating CSGs trade in one country affects neighboring countries’ trade. It’s recommended that governments implement appropriate strategies, including rail, road, and air network improvements, to reduce transaction costs.

KEYWORDS:

• Climate smart good
• Middle East and North Africa countries
• trade
• spatial econometrics

Disclosure statement

No potential conflict of interest was reported by the authors.