Effects of International Trade and Economic Development on Quality of Life

Abstract

The authors integrate theories from macromarketing, economics, and sociology to develop a conceptual model assessing the effects of international trade and economic development on physical quality of life (PQOL), individual freedom, and the environment (carbon dioxide [CO2] emissions and environmental performance). The study introduces new measures of individual freedom and environmental performance to the macromarketing literature. Research hypotheses are tested on time-lagged data from 104 countries using structural equation modeling. Results suggest that international trade is associated with economic growth that enhances the well-being of people and their ‘‘visible’’ natural environment but with a deleterious impact on global warming through increased CO2 emissions. Increases in PQOL and individual freedom are associated with lower CO2 emissions and improved environmental performance. These findings have important implications for public policy makers, marketing academics, and practitioners.