How does agricultural intra-industry trade affect climate change: the case of Turkey

Climate change is a significant problem threatening the future of the world. The econometric analyses examining the relationship between climate change and agricultural intra-industry trade (IIT) are quite new and insufficient, especially for Turkey. Therefore, the study explores the impact of agricultural IIT on climate change along with energy consumption, agricultural productivity, and economic growth, using time series data from 1961 to 2015. The Johansen cointegration procedure and vector error correction model were employed to attain the remarked objectives. Almost all the variables are statistically significant, and the coefficients' signs are as expected. Agricultural IIT and energy consumption are negatively related to climate change, while economic growth and agricultural productivity are positively related in the long run. The results also reveal that unexpected shocks to dependent variables have permanent effects on climate change. The research can lead to the development of new policies that benefit climate change and agricultural IIT.