Trade openness has been established and documented to foster economic growth and development. However, this is coupled with problems. In this light, this paper employs a qualitative approach to review the relationship between trade openness and Foreign Direct Investment (FDI) inflow, Economic growth and carbon dioxide (CO2) emissions using China as the case study. The study revealed that trade openness has its benefits as well as its problems. That is, trade openness significantly influences economic growth, FDI, and the emission of CO2 in the atmosphere in China. Consequently, CO2, FDI, and economic growth are significantly influenced by China's level of trade openness. For instance, in China, trade openness augments economic growth and influences foreign direct investment inflow positively. However, it increases the amount of carbon dioxide in the atmosphere. It is therefore important for policymakers to carefully consider these relationships when designing policies aimed at reducing carbon emissions and promoting sustainable economic growth.
Darkwah, Joseph Asante and Boohene, David
"Trade Openness in China’s Economy: A Review Study,"
Interscience Management Review: Vol. 6:
2, Article 2.
Available at: https://www.interscience.in/imr/vol6/iss2/2