The Impact of Industrialization, ICT and Trade Openness on the Country in the Middle of Europe: Lithuania

In recent years, industry development has become closely connected with ICT and trade openness. This research explores how industry, ICT, and trade openness affect the environment, highlighting the importance of investing in low-carbon technologies and energy-efficient machinery. The goal of this research is to investigate the long-run and short-run impacts of industrialization, ICT, trade openness, and economic growth on per capita carbon emissions in Lithuania from 2000 to 2024. This study uses the ARDL econometric model along with several diagnostic tests. The Breusch-Godfrey Serial Correlation test confirmed no serial correlation, while the Breusch-Pagan-Godfrey test indicated that no heteroscedasticity exists. The Ramsey RESET test confirmed that the model is correctly specified and significant. Additionally, the VIF multicollinearity test shows that no multicollinearity exists between the research variables. The research outcomes show that industrialization, ICT, and economic growth have a positive relationship with per capita carbon emissions and are harmful to the environment, whereas trade openness has a negative effect on per capita carbon emissions in Lithuania and contribute environmental sustainability. The novelty of this research lies in its long-run and short-run analysis of the interaction among the selected variables. This research provides policy suggestions aimed at enhancing environmental quality.