THE RELATIONSHIP BETWEEN PARTICIPATION IN GLOBAL PRODUCTION NETWORKS AND ENVIRONMENTAL POLLUTION ORIGINATING FROM THE LOGISTICS INDUSTRY

Abstract

Determining environmental pollution and the factors causing this pollution is important for the sustainability of economic activities. While this study deals with the environment within the framework of the logistics sector, it tries to understand logistics by placing it within the framework of production networks theory. So, this study examined the environmental pollution caused by the logistics industry, which mediates participation in global production networks. The sample of the study consists of 38 Islamic countries and time range of the data covers 2000-2018. The research method is panel cointegration. The results show that the participation of Islamic countries in global production networks is not environmentally friendly. A linear relationship has been determined in the long run between participation in global production networks and gases that are harmful to the environment originating from the logistics industry. Accordingly, the results show that CO2 and GHG arising from logistics industry and imports of intermediate goods, which represent participation in global production networks, move together in the long run. This result indicates that participation in global production networks for economic development may harm the sustainability of Islamic countries and hinder their development in the long run.