Green energy practices in manufacturing export dynamics: panel evidence from emerging markets

This study examines the impact of renewable energy growth on the dynamics of manufacturing exports in 17 emerging market economies using a balanced panel spanning 1995 to 2021. This study employs the CCEMG method as the baseline estimator, the PMG-ARDL method as a robust alternative, and the FGLS technique as a consistency check estimator. Results from the above methods indicate that renewable energy growth reduces the share of manufacturing exports in the merchandise basket and leads to a structural shift from traditional to modern manufacturing exports in emerging markets. The findings also reveal the beneficial roles of financial globalization, government spending, and economic growth across the dimensions of manufacturing exports. Interestingly, the findings suggest that while the domestic currency depreciation increases traditional and overall manufacturing exports, it reduces modern manufacturing exports. Based on the above findings, this study presents several practical policy suggestions for emerging nations.