Shahid Ali, PhD
Department of Economics & Development Studies, University of Swat
Title: Title: E-BABE- Economic Globalization, Institutional Quality and Environmental Quality: Cross Country Analysis
Biography
Biography: Shahid Ali, PhD
Abstract
Abstract
Using an updated data set on economic growth, detailed measures of globalization, institutional development and environmental quality provide some evidence regarding the dependency of environmental quality on the economic globalization of the sample countries. The study contributes to a growing literature on the importance of existence of complementarities between economic globalization with indicators of institutional development in affecting environmental quality. The study uses panel data from 1996 to 2019 in SAARC countries . Using CS-ARDL econometric technique for estimating non-linear regression specification that interacts a proxy of economic globalization with proxies of institutional development, this study draws some important inferences. Our results suggest that economic globalization contributing to environmental quality. However, the relationship between economic globalization and environmental quality holds only when the host country has a minimum level of certain level of institutional development. Hence, countries with week institutions suffered more the process of globalization in terms of environmental degradation.
The implication for policy sequencing is that the countries, where institutions are week, must have a strategy in place to improve their institutions.
Keywords: Economic Globalization, Institutions, Environmental Performance, Panel data
JEL Classification: C10, O10, Q5; D31