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International trade, together with foreign direct investment (FDI), promotes economic integration with complex global supply value chains, which is now recognized as a crucial factor in determining CO₂ emissions. Production reallocation across countries, often associated with FDI, promotes cross-border trade of emission-embodied products. By applying panel pooled mean group-autoregressive distributive lag (PMG-ARDL) models, this study discusses the long-run relevance among CO₂ emissions, international trade, and FDI inflows with the consideration of the short-run dynamics over 52 countries during the period from 1991 to 2014. Focusing on possible differences between developed and the developing countries, this study reveals that CO₂ emissions have a negative long-run relationship with trade exclusively for developed countries, while they have a positive long-run relationship with FDI inflows solely for …