Tariffs, Tensions, Transition and Environmental Sustainability: An Analysis of Trade Fragmentation and its Global Impact Within the OECD Economies

Menzi Mhlanga

Abstract

Trade fragmentation within global trading systems refers to the increasing complexity and division of trade links between various countries, often associated with the rise of regional trade agreements that create distinct trading blocs. This paper examines the impact of trade openness on the economic growth of 31 selected nations within the Organisation for Economic Cooperation and Development (OECD) between 1990 and 2024. The paper utilised the Pooled Ordinary Least Squares (OLS) regression. The findings indicate that trade openness has a positive influence on economic growth. Furthermore, CO₂ emissions and political stability have a positive influence on economic growth within the nations. This paper therefore recommends strengthening trade relations, boosting energy transitions, and utilising clean energy sources as a means of increasing trade while also mitigating environmental degradation.

Keywords

Corresponding Author

Menzi Mhlanga, Department of Economics, Nelson Mandela University, Qgeberha, South Africa.

Citation

Mhlanga, M. (2025). Tariffs, Tensions, Transition and Environmental Sustainability: An Analysis of Trade Fragmentation and its Global Impact Within the OECD Economies. Econ Dev Glob Mark, 1(1), 01–17.